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​FTC Gives Clearance for Merger of Mercy and UPMC

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10/16/2007

PITTSBURGH, October 16, 2007 — The Federal Trade Commission (FTC) has closed its investigation into the merger of UPMC and Mercy Hospital of Pittsburgh, removing a significant hurdle for a transaction designed to save the city's only remaining Catholic hospital, Mercy, the Catholic Diocese of Pittsburgh and UPMC officials announced today.

The merger still requires Vatican approval, but Mercy and UPMC officials said they expect the transaction to close by the end of this year. The FTC action follows approval of the deal in May by Pennsylvania Attorney General Tom Corbett.

We look forward to working with all involved to ensure that the 160-year tradition of excellence that made Mercy Hospital a beacon in Catholic health care in the past will continue with uninterrupted Catholic health care well into the future, said Diocese of Pittsburgh Bishop David A. Zubik. Under the terms of the merger agreement, the 535-bed facility will continue to operate as a Catholic hospital under the canonical oversight of the diocese.

The transaction, announced in September 2006, also ensures continuing financial support for the charitable mission of the Sisters of Mercy and will guarantee the availability and accessibility of vital clinical services, such as trauma and burn care, long provided by Mercy in the citys Uptown neighborhood. As part of UPMCs world-renowned health system, the hospitals physicians will have greater access to cutting-edge technology and facilities, while ensuring the jobs of more than 3,000 Mercy employees.

The FTC decision is good news for the Mercy family, said Jack R. McGinley Jr., Esq., Chairperson, Pittsburgh Mercy Health System Board of Trustees, which is transferring ownership of the hospital and associated physician organizations to UPMC. While there remains a significant amount of work ahead, we look forward to the successful completion of the transaction. Mercy Hospital is a very special organization with a unique place in Pittsburgh's history; I'm pleased that it will continue to serve the community for future generations.

UPMC President and Chief Executive Officer Jeffrey A. Romoff noted that the nearly year-long FTC investigation included the review of tens of thousands of documents, consuming hundreds of man-hours of work. The FTC, like the state regulators, has clearly realized that this is a highly competitive health care market and that this transaction is in the best interest of Mercy's patients and Pittsburgh's health care consumers, he said. We look forward to welcoming Mercy's physicians, staff and patients into the thriving UPMC family.

Sister Margaret Hannan, RSM, president of the Pittsburgh Regional Community of the Sisters of Mercy of the Americas, applauded the historic decision. We believe that this change is consistent with our values of stewardship, courage, care for the poor and is the best option for preserving Mercy's mission, she said. At the same time, the transfer will enable the Sisters of Mercy to establish a multi-million-dollar fund to enhance their current programs for the poor and to create new health care initiatives.

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 Green Tree.

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

About UPMC

The University of Pittsburgh Medical Center (UPMC) is a $7 billion integrated health care enterprise in Pennsylvania and one of the leading academic medical centers in the country. It was one of only 18 hospitals nationwide to earn "honor roll" status in U.S. News & World Report's 2007 "America's Best Hospitals" survey, marking its eighth appearance on that prestigious list.

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 45,000 employees and $7 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 5,000 physicians 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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