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​St. Margaret Memorial Hospital First to Officially Merge With the University of Pittsburgh Medical Center System

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3/14/1997

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UPMC Media Relations

PITTSBURGH, March 14, 1997 — Officials from St. Margaret Memorial Hospital and the University of Pittsburgh Medical Center System (UPMCS) announced the merger of the two organizations after the board of directors of the UPMCS ratified and approved the agreement at its meeting yesterday (March 13). The board of directors of St. Margaret Health System, Inc., approved the merger on January 28. Under the agreement, St. Margaret Memorial Hospital and its parent company, St. Margaret Health System, Inc., formed a new corporation, University of Pittsburgh Medical Center, St. Margaret (UPMC St. Margaret). This corporation will operate financially and administratively within the UPMCS as a subsidiary. Unlike recent UPMCS acquisitions, no funds were exchanged in this transaction and the resources of these two fiscally strong organizations were combined.

UPMC St. Margaret will continue to operate as a community hospital providing high-quality inpatient, outpatient and emergency department services to suburban municipalities north and east of Pittsburgh.

"This merger is a positive development for this institution and the communities it serves," stated Stanley J. Kevish, who will continue in the position of president of UPMC St. Margaret. "By combining resources with one of the country's leading academic medical centers, some clinical services such as diabetes/endocrinology, cardiology, oncology, rheumatology (arthritis) and occupational medicine will be expanded and enhanced. Likewise, the role of our preeminent family practice residency program will be preserved and broadened to benefit hospitals throughout the UPMCS."

"We welcome UPMC St. Margaret into the UPMCS," stated Jeffrey Romoff, president of the UPMCS. "This fine community hospital, with its tradition of providing high-quality clinical services, brings important resources to our developing health care system. In today's changing health care environment, no organization can stand alone. It is the goal of the UPMCS to provide the premium health care to patients in the least costly and most geographically convenient location possible. UPMC St. Margaret makes this goal a reality for the residents of the north/east suburban area."

For the next five years, UPMC St. Margaret will be governed by a 16-member board of directors, six of whom shall be appointed by the UPMCS. In addition, UPMC St. Margaret will appoint two directors to the UPMCS parent board, one of whom will serve on the executive committee. The medical staff of St. Margaret will remain intact and physicians will be eligible to apply for privileges at other UPMCS hospitals.

The St. Margaret Memorial Hospital Foundation will continue in existence and its assets will support UPMC St. Margaret's community service projects and programs.