Pennsylvania attorney general approves merger - Industry Scan - Mike Fisher; merger of Children's Hospital and UPMC Health System - Brief Article

Healthcare Financial Management, Dec, 2001

Pennsylvania Attorney General Mike Fisher signed a consent decree with Children's Hospital and UPMC Health System, both in Pittsburgh, Pennsylvania, saying their merger agreement guarantees children from 23 western Pennsylvania counties will receive necessary treatment regardless of their ability to pay or whether their health plan has a contract with the hospital. As part of the deal, Children's Hospital will get a $250 million facility, slated for completion in 2005, while UPMC has committed to raising $250 million to expand Children's clinical and research programs over the next 10 years.

An antitrust lawsuit against the $500 million merger had been filed by West Penn Allegheny Health System and three health plans-High-mark Blue Cross Blue Shield, Gateway Health Plan, and Managed Care of America. The consent decree also details a process for health plans to obtain contracts and resolve contract disputes with Children's.