Jameson Health System has joined UPMC
Transaction Announcement
Ponder & Co. is pleased to announce that Jameson Health System (“JHS”) has merged with University of Pittsburgh Medical Center (“UPMC”). JHS became the 21st hospital in UPMC’s network, and the alignment will lead to significant advances in patient care services, access and outcomes within Lawrence and Mercer counties.Institute.
Jameson Health System
JHS includes two hospital campuses in New Castle, PA, licensed for 208-acute care beds, as well as a 78-bed long-term skilled nursing facility and a Cancer Center that was developed as part of a previous joint venture with UPMC. With more than 1,300 employees, 250 physicians and 25 facilities, the system includes inpatient and outpatient hospital services including adult and pediatric care; 24-hour emergency services; surgical and ambulatory care; outpatient diagnostics; long-term care; adult and geriatric behavioral health; in-hospital transitional care and acute rehabilitation; inpatient and outpatient rehabilitation and physician-based clinic and office services.
UPMC
The largest nongovernmental employer in Pennsylvania, UPMC integrates more than 62,000 employees, more than 20 hospitals, 400 doctors’ offices and outpatient sites, a more than 2.3-million-member health insurance division, and international and commercial operations. A world-renowned heath care provider and insurer, UPMC is inventing new models of accountable, cost-effective, patient-centered care. It provides more than $887 million a year in benefits to its communities, including more care to the region’s most vulnerable citizens than any other healthcare institution.
Ponder’s Role
JHS initially selected UPMC in 2014 as its preferred partner. But after plans were put on hold by the Pennsylvania Attorney General’s regulatory process, JHS engaged Ponder’s M&A Group to run a competitive re-bid process to seek qualifying alternative bids. Through this process and other legal/regulatory steps, JHS was ultimately able to proceed with its merger with UPMC, yielding significant benefits to the hospital and community. Ponder played a key role in exploring strategic options and navigating parts of the regulatory process. As part of the transaction, UPMC will invest $75 million to develop services and facilities in Lawrence County with an additional $10 million reserved for strategic physician recruitment.
Ponder & Co.
Ponder & Co. provides M&A and capital advisory services to a client base of over 150 non-profit hospitals and healthcare systems. Ponder’s M&A experience includes more than 100 M&A engagements involving general acute and specialty hospitals, ambulatory surgery centers and behavioral health facilities. Completed transactions have had asset values ranging from $4 million to over $1.5 billion.
Ponder’s M&A services include:
- Strategic option assessments
- Partnerships and joint ventures
- Mergers, acquisitions and divestitures
- Business valuations and fairness opinions
- Board and special committee assignments
- Real estate transaction services