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
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