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UPMC/University of Pittsburgh Schools of the Health Sciences

Contact Person
Linda K. Ross
Corporate Communications DepartmentPittsburgh Mercy Health SystemPager: 412-391-2337, code 1434

Contact Person
Shannon E. Adam
Corporate Communications Department
Pittsburgh Mercy Health System
Pager: 412-391-2337, code 1434

Patients and medical professionals may call 1-800-533-UPMC (8762) for more information.

UPMC Media Relations 

Attorney General Corbett Approves Agreement for Merger of Mercy and UPMC

Mercy and UPMC Applaud Consent Decree that Preserves Mercy's 160-Year Tradition of Service to the Community

PITTSBURGH, May 25, 2007 Pittsburgh Mercy Health System (PMHS) and UPMC praised today's consent decree announced by Pennsylvania Attorney General Tom Corbett as an important step toward preserving Pittsburgh's last faith-based hospital. The Attorney Generals approval marks a significant milestone in completing the merger between Mercy and UPMC, which still requires completion of reviews by the Federal Trade Commission (FTC) and the Vatican before it is finalized.

The planned merger of Mercy and UPMC, announced in September, will save thousands of Pittsburgh jobs, allows Mercy Hospital to continue to provide much needed services to the community and sustain the charitable mission of the Sisters of Mercy. It also will guarantee the availability and accessibility of vital clinical services, such as trauma and burn care, long provided by Mercy.

We are pleased that the Attorney General has agreed that this merger is good for Mercy and good for the health care consumers of western Pennsylvania, said John R. McGinley Jr., Esq., chairman of the PMHS Board of Trustees. We remain hopeful that the FTC will soon complete its review and enable Mercy to continue as Pittsburgh's only Catholic hospital.

Sister Margaret Hannan, RSM, president of the Pittsburgh Regional Community of the Sisters of Mercy of the Americas, applauded the historic decision. This transaction will help us to ensure the continuation and enhancement of our mission-driven, community-based programs devoted to serving the poor and the elderly of our community.

The consent decree, a consensual agreement between the parties and the Attorney General, has been filed with the U.S. District Court for the Western District of Pennsylvania. Through the decree, the Attorney General has addressed his concerns about the mergers potential impact on competition, while recognizing the benefits of the transaction to the community

This merger will allow us to preserve nearly 3,500 jobs, provide Mercy physicians with greater access to cutting-edge technology and facilities for their patients, and expand clinical programs that are important not only to the neighborhood around Mercy, but to western Pennsylvania as a whole. Mercy is an essential part of the health and economic well-being of this community, said Elizabeth Concordia, senior vice president, UPMC, Academic & Community Hospitals, and president, UPMC Presbyterian Shadyside.

A robust Mercy Hospital is also crucial to the economic revitalization of the Lower Hill and Uptown neighborhoods and is an important component of a thriving Downtown-to-Oakland corridor, she added.

"This announcement can be greeted only with enthusiasm, said Bishop Paul J. Bradley, administrator of the Diocese of Pittsburgh. We are one step closer to realizing our goal of ensuring that the hospital will retain its Catholic identity and will continue to operate according to the ethical and religious directives established by the United States Conference of Catholic Bishops.

Under the terms of the merger agreement, UPMC will take ownership of Mercy Hospital and its associated physician organizations from the Pittsburgh Mercy Health System. The 535-bed facility will continue to operate as a Catholic hospital, under the canonical oversight of the Diocese of Pittsburgh.

When the transaction is completed, UPMC will assume responsibility for all liabilities and assets of Mercy Hospital, while donating approximately $30 million to the PMHS to support the mission of the Sisters of Mercy. With an additional $70 million that will be transferred to PMHS before the merger, the sisters will administer a $120 million fund for the benefit of the local community.

About The Mercy Hospital of Pittsburgh

The Mercy Hospital of Pittsburgh the first hospital in Pittsburgh and the first Mercy Hospital in the world was established in 1847 by the Sisters of Mercy. Today, Mercy continues to provide compassionate care in the Catholic tradition.

Mercy's experienced team of health care professionals specializes in providing neurology, neurosurgery and treatments for strokes; cardiology, cardiovascular and thoracic surgery services; trauma and burn care through a Level I Regional Resource Trauma Center; orthopedics, hip resurfacing and joint replacement surgery; physical medicine and rehabilitation services, including acquired brain injury rehabilitation; hearing and balance services; wound services; obstetrics and gynecology, including maternal-fetal medicine and a Level 3 Neonatal Intensive Care Unit; and inpatient and outpatient behavioral health services.

Other services include medical and surgical care; emergency care; medical, surgical, and radiation oncology; pediatrics; diabetes; home health; occupational health; and palliative care. Convenient outpatient services are offered at Mercy's SmartHealth Outpatient Centers in Bethel Park, Brentwood and GreenTree.

The hospital sponsors nine graduate medical education programs and a diploma school of nursing.

With 550 physicians and 2,600 associates, Mercy is one of the regions largest employers.

About UPMC

The University of Pittsburgh Medical Center (UPMC) is an integrated health care delivery system in Pennsylvania and one of the leading academic medical centers in the country. It is one of only 14 hospitals nationwide to earn "honor roll" status in U.S. News & World Report's 2006 "America's Best Hospitals" survey.

Widely recognized for its innovations in patient care, research, technology and health care management, UPMC has transformed the economic landscape in western Pennsylvania. The region's largest employer, with 43,000 employees and $6 billion in revenue, UPMC comprises 19 tertiary, specialty and community hospitals, 400 outpatient sites and doctors' offices, retirement and long-term care facilities, an insurance plan, and international ventures. Nearly 5,000physicians are affiliated with UPMC, including more than 2,300 employed physicians.

About the Sisters of Mercy

Seven Sisters of Mercy came to Pittsburgh from Ireland in 1843 and established the first U.S. foundation of Sisters of Mercy. Today, the Sisters of Mercy in Pittsburgh sponsor health care, education and community-based ministries, including Pittsburgh Mercy Health System, Carlow University and Mercy Neighborhood Ministries in the Pittsburgh regional area, the Intersection in McKeesport, Sisters Place in Clairton, and Holy Cross Hospital, Fort Lauderdale, Fla.

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