Jameson Health System in New Castle, Pa., has issued requests for proposals to a number of potential merger partners as requested by the Pennsylvania Attorney General.
Here are five things to know about Jameson and its journey to find a potential partner.
1. Pittsburgh-based UPMC and Jameson signed a letter of intent to merge in September 2014, and the boards of directors of both organizations formally approved a definitive merger agreement in February 2015. Jameson had hoped to have the deal approved by the Pennsylvania Attorney General's Office and closed this spring, but the decision was delayed due to antitrust concerns. The state attorney general then expressed a desire for Jameson to look for other partnership opportunities across a broader geography, which has resulted in Jameson soliciting proposals.
2. UPMC has reaffirmed its proposal to merge with Jameson in a transaction that would include a promise to cover all of Jameson's long term debt and secure all of its pension liabilities. Additionally, in the near future, it would make a substantial infusion of funds to cover operating and capital needs, physician recruitment, IT advancements and additional operational service developments. The UPMC offer has been extended through Dec. 31, 2015.
3. In the meantime, Jameson President and CEO Doug Danko said in a news release, the system will "continue to be focused on selecting the best partner," and looks forward to receiving additional offers.
4. Under the terms of the solicitation process, proposals are due in about 30 days.
5. Jameson has retained Ponder & Co. as its financial advisor leading this process.
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