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University of Pittsburgh Medical Center and Passavant Hospital Officially Merge and Announce Major Construction Program

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PITTSBURGH, September 16, 1997 — Today, Passavant Hospital officially merges with the University of Pittsburgh Medical Center to become UPMC Passavant, and announced plans to begin the initial phase of a construction program which will expand health care services available to the North Hills community. The cost of this first phase of construction is estimated at $40-50 million.

"A new era begins today in the North Hills," said Ralph T. DeStefano, president and chief executive officer of UPMC Passavant. "This joining together of two strong organizations that share a common vision for the future of health care delivery in the region will enhance our long-standing service to the community."

"The merger represents only the beginning of the commitment we have made to northern Allegheny County and southern Butler counties," said Jeffrey Romoff, University of Pittsburgh Medical Center president. "With this partnership we seek to become the major provider of health care in the area. It is our intention to bring a broad scope of tertiary-level services and research protocols to UPMC Passavant. By combining our resources and building on our individual strengths we can ensure that this region will have access to the most advanced medicine available today."

Under the terms of the merger agreement, UPMC Passavant is now a subsidiary of the University of Pittsburgh Medical Center. It will retain its own board of trustees, medical staff and administration.

"This merger will enable us to advance our mission in the community beyond what we are able to accomplish independently, and it will allow us to respond more effectively to changes in the western Pennsylvania health care delivery system," Mr. DeStefano said.

"The ultimate beneficiaries will be the residents of the North Hills who will be able to take advantage of the latest medical treatments and technology close to home," Mr. Romoff added.

The first phase of the construction program will include a three-story patient wing which will be added on top of the hospital's existing east wing, an office building, a 100- unit assisted-living facility, and a 400-car parking garage. Construction for this initial phase could be completed by early 1999.

"These are bold and necessary plans which will allow us to offer a continuum of care by providing comprehensive services to a broad segment of the community," stated Mr. DeStefano. "This is consistent with our historic mission to provide quality, cost-effective and accessible services to meet total health needs."

No new beds will be added to the hospital's current number of 272 acute-care beds and the 24-bed sub-acute care unit. Patient units in the existing building will be moved to the new addition and the existing building will then be renovated to house an outpatient pavilion. The planned office building will be multi-purpose and will house some of the University of Pittsburgh Medical Center's corporate services. The assisted-living facility will provide supportive services such as personal care, housekeeping, meals and 24-hour oversight for the elderly. The building of the garage will ensure continued ample patient and visitor parking on the UPMC Passavant campus. UPMC Passavant is now actively pursuing all necessary municipal approvals.

In 1995, the two organizations signed an affiliation agreement, which has led to joint purchasing programs, clinical partnerships and a number of other projects including the establishment, on July 30, of a University of Pittsburgh Cancer Institute program at UPMC Passavant. Both the University of Pittsburgh Medical Center and UPMC Passavant are members of the Tri-State Health System, a network of seven health care providers in southwestern Pennsylvania.

UPMC Passavant is the largest employer in northern Allegheny County. It was established in 1849 and was the first Protestant hospital built in the United States. In 1964, it moved from the City of Pittsburgh to its present location, where it serves the communities of northern Allegheny and southern Butler counties. More than 1,400 employees and 520 physicians share the hospital's commitment to providing high quality, cost-effective services with an emphasis on personal caring and customer satisfaction.

As the area's only academic medical center, the UPMC ranks among the top 15 in the nation in terms of federal funding for research. It enjoys a worldwide reputation for excellence in the provision of a full array of specialty services in such areas as cancer, human genetics, orthopaedic surgery, psychiatry, cardiology and transplantation.

The University of Pittsburgh Medical Center is meeting the challenges presented by the changing health care industry by developing an integrated, comprehensive health care delivery system throughout western Pennsylvania.