Jameson says 3 merger offers inadequate
NEW CASTLE — The Jameson Health System says three merger proposals it received during a rebid process requested by the Pennsylvania Attorney General aren’t adequate, but state officials still oppose its preferred merger with UPMC.
“Our board of directors have taken time to assess the three bids,” said Jameson spokesman Lisa Lombardo in a statement. “They do not feel that any of the three bids received currently meet the complete criteria needed to provide Lawrence County the services and support it needs.”
State officials don’t agree, according to the hospital. Jameson said its financial advisory team presented the offers to the AG’s office but failed to convince officials of their shortcomings.
Lombardo said, “We are disappointed at their disregard for the long-term sustainability of Jameson under the rebid proposals.”
AG’s spokesman Jeffery Johnson said state officials are fighting for the best interests of patients served by Jameson.
“The (AG’s office’s) primary concern is that the citizens of Lawrence County have access to affordable health care,” Johnson said in a statement. “The Jameson Board of Directors has received more than one proposal that will accomplish that goal.”
The office did not respond to requests for more detailed information about the meeting or the proposals received by Jameson.
Lombardo said that state officials have continued to push Jameson to consider the proposals, and the hospital system is continuing negotiations that include capital structure, debt service, operations and long-term plans.
“Our board of directors won’t settle for a deal that ... is not the best option for our community’s health care consumers,” Lombardo said.
She said no information on the proposals is being released and no further comment from the hospital system on the process would be made.
State officials earlier this year asked Jameson to issue a rebid after a review of the Jameson-UPMC merger proposal stoked antitrust issues in the attorney general’s office.
State officials told the Lawrence County Commissioners in August that any Jameson-UPMC merger would result in a health system that had more than 70 percent of in-patient market share in Lawrence County.
The next-largest shareholder would be Ellwood City Hospital at 7 percent.
Jameson said Thursday that it “continue(s) to believe that the agreement with UPMC would ... ensure Lawrence County has the resources and services it needs,” but that state officials continue to oppose the idea.
In August UPMC extended its merger offer through Dec. 31, in a move both hospital systems said signaled a commitment to the $80 million merger.
