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​UPMC Acquires the South Side Hospital

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2/14/1996

PITTSBURGH, February 14, 1996 — George H. Taber, chairman, University of Pittsburgh Medical Center System (UPMCS), and Honorable Robert J. Cindrich, chairman, The South Side Hospital (TSSH), today jointly announced the signing of an agreement for the acquisition of the assets of TSSH by the UPMCS.

TSSH is a 225-bed acute-care community hospital that has been in existence since 1889 serving the south Pittsburgh communities. The University of Pittsburgh Medical Center (UPMC), this area's major academic medical center, operates 1,221 acute-care beds, and is expanding its health care market share in an effort to increase efficiencies in the delivery of health care to the greater Pittsburgh community.

George J. Korbakes, TSSH president, stated that the goal of the administration and Board of Directors of TSSH has been to continue to provide quality health care services to the south Pittsburgh communities and serve the charitable purpose of promoting the well-being of that community. Due to the fast changing health care market not only in Pittsburgh, but in the United States, networking with larger facilities is imperative for stand-alone hospitals such as TSSH in order to remain viable.

The agreement signed today culminates almost four years of strategic direction initiated by TSSH Board of Directors. Following two years of a deliberative process, the UPMC was selected by TSSH for an affiliation agreement. Over the past 20 months the two organizations developed a relationship that demonstrated that they shared many of the same philosophies and principles which proved to be beneficial to both organizations and the communities they serve. With the continuing evolution of the health care market, TSSH Board of Directors concluded that the UPMC has the expertise and resources to continue the principles of the hospital's mission and to keep jobs in the local community.

"This acquisition is a significant opportunity for the UPMC to join with TSSH in serving the needs of the South Side community," said Jeffrey Romoff, UPMC President. "As TSSH becomes a part of the UPMC System, we will be able to deliver the finest quality health care in the most cost-effective and efficient manner."

The agreement provides for the establishment of an independent foundation, funded from the proceeds of the transaction, which will support the health care and related needs of the south Pittsburgh communities. Furthermore, the assets and operation of TSSH will be transferred to a new not-for-profit subsidiary corporation to be named the University of Pittsburgh Medical Center, South Side.

A transition team has been formed, made up of representatives of both organizations, to finalize the details of the transaction, which is expected to be concluded on or before April 30. The new University of Pittsburgh Medical Center, South Side will remain an acute-care facility.

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