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Jameson gets clearance to merge with UPMC pending consent decree

The Pennsylvania Attorney General will not oppose a proposed merger between New Castle, Pa.-based Jameson Health System and Pittsburgh-based UPMC, according to a statement from Jameson officials.

The process of joining the two systems began in September 2014, when Jameson signed a letter of intent to merge with UPMC. The two systems signed a definitive merger agreement last February. The health systems had hoped the deal would be approved by the state attorney general and close last spring, but the decision was delayed due to antitrust concerns. The transaction was issued another setback last August, when the Pennsylvania Attorney General's Office recommended Jameson look for other buyers before finalizing the deal with UPMC due to the potential antitrust issues associated with the deal.  

After conducting a new round of bidding for potential partners, Jameson's board determined that no rebid proposal met the qualifications to serve the interests of Lawrence County residents. The attorney general disagreed, and the issue went to arbitration. Jameson was successful in arbitration, allowing the deal to move forward.

"We are grateful to have received a favorable ruling that supports our goal to ensure a future of long-term access to high-quality healthcare for the 90,000-plus residents of Lawrence County," said Jameson officials.

With clearance from the attorney general, the deal will go through if UPMC and the attorney general can reach a consent decree. "A proposal for such a consent decree is already in the hands of the Attorney General's Office," according to Jameson officials.

More articles on heatlhcare industry transactions:

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5 recent hospital transactions and partnerships

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