FTC approves U of Pitt takeover of Catholic hospital

The Federal Trade Commission has agreed to let the University of Pittsburgh Medical Center move ahead with acquiring Catholic healthcare facility Mercy Hospital. The move should boost UPMC's market penetration further from its already-high market share, which hit 25.8 percent in fiscal 2006 in the 29 western Pennsylvania counties it serves. Meanwhile, it should help Mercy, which had built up losses of $42 million over the past three years. 

Under the terms of the deal, Mercy will be acquired by UPMC for $100 million, plus some extra cash which will keep the Pittsburgh Mercy Foundation's $20 million endowment flush.  Despite the acquisition by UPMC, an academic medical center, Mercy will continue to operate as a Catholic hospital under supervision of the Diocese of Pittsburgh.

To find out more about the deal:
- read this Pittsburgh Business Times article

Related Articles:
FTC approves IPA model. Report
FTC uses leverage to step up antitrust scrutiny. Report
FTC critical of IL hospital merger, won't force sale. Report

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.