News Releases

News Releases

For Immediate Release

Children’s Hospital of Pittsburgh Approves Merger Agreement with UPMC Health System

Access to Children’s Hospital will Remain Open to All; Groundbreaking for New Oakland Facility Expected in Early 2002

The Board of Trustees of Children’s Hospital of Pittsburgh announced today that they have approved a merger agreement with UPMC Health System, uniting two of the most well known and respected health care organizations in western Pennsylvania.

Upon the closing of the final agreement, expected by Oct. 31, 2001, the $500 million total transaction will be the largest hospital merger in Pittsburgh history. Under the terms of the agreement, UPMC has agreed to build a new $250 million facility for Children’s Hospital on the site of the UPMC Montefiore campus. In addition, UPMC will assure another $250 million of funds from various sources to expand Children’s clinical and research programs over the next 10 years and will maintain Children’s historical open access policy.

The agreement states that UPMC will honor all of Children’s existing or historical practices related to complete and open access for all children regardless of insurance coverage or ability to pay.

The merger was proposed earlier this year on April 5. This definitive agreement, approved today by Children’s Board, was approved by the executive committee of the UPMC Health System Board of Directors on August 15. It has already cleared federal anti-trust review and is currently being reviewed by Pennsylvania’s Attorney General.

“The staff at Children’s are excited about the planned new state-of-the-art hospital that we need as a solution to our outdated facility where we’ve been since 1926,” said Ronald L. Violi, president and chief executive officer of Children’s Hospital. “The agreement to merge with UPMC makes sense in so many ways to our community. It maintains open access to pediatric care for all and will greatly enhance our mission of perpetuating world class patient care, teaching and research.”

Children’s investments, totaling approximately $200 million, will be moved to the newly formed Children’s Hospital of Pittsburgh Foundation and will remain separate from UPMC. The Foundation will maintain the Free Care Fund and also spearhead a fundraising effort to help support construction of the new hospital.

“We are pleased to have this agreement and to proceed with our plans for the new facility,” said Jeffrey Romoff, president of UPMC Health System. “UPMC is committed to keeping the quality services of Children’s available to all children and their families. In fact, through the newly created Children’s Health Division, these services will be available throughout the system, thus giving access to more children than ever before.

Mr. Romoff went on to say that through this merger, Children’s will have the resources necessary to continue to be one of the leading clinical and academic pediatric programs in the country and enhance its standing in pediatric research.”

Plans for construction of the new facility are scheduled to be completed by Oct. 31, 2001. Groundbreaking is scheduled for early 2002 with an anticipated move into the new Children’s Hospital in 2006. As a subsidiary of UPMC, Children’s will retain its name—Children’s Hospital of Pittsburgh – with the additional tag, “of UPMC Health System.” Integration plans will begin following the closing and are not expected to affect any significant organizational changes for at least one year. In addition, no major changes to clinical staffing are anticipated.

On June 26, 2001, Children’s, the University of Pittsburgh, and UPMC announced plans for a $600 million building project that will modernize the Oakland medical campus and include construction of a new Children’s Hospital of Pittsburgh on the UPMC Montefiore campus. The planned seven-level, 320,000 gross square feet inpatient facility will be built on Terrace Street. It will house an emergency department, operating rooms, intensive care units, inpatient units, same-day surgery suites, a rooftop garden and a central atrium. Its 235 beds will be arranged in patient areas designed specifically to provide family-centered care.

There will be an ambulance entrance on Terrace Street and a planned helipad atop the building. Additional space will be obtained by renovating four floors of the existing UPMC Montefiore facility and the Kaufmann Medical Office Building. The largest new building in this project is a planned 12-story child and adult ambulatory care center on Fifth Avenue.

At the news conference announcing this project, Allegheny County Executive Jim Roddey said, “This is the most important new economic development initiative in western Pennsylvania. Beyond the new building project in Oakland, this program will enhance our national status as a center of medical excellence and boost our ability to recruit additional high quality professionals to the area.”

Children’s Hospital of Pittsburgh is the only hospital in Western Pennsylvania dedicated solely to the care of infants, children and young adults. The hospital consistently ranks as one of the ten-best children’s hospitals in the nation by U.S. News and World Report , ranking fourth in 2001. Last year it ranked eighth in funding provided by the National Institutes of Health. Children’s has 1,916 employees and 740 active staff physicians.

UPMC is the leading integrated health care delivery system in western Pennsylvania. It meets comprehensive health care needs through the UPMC hospitals–the regions largest and finest network of tertiary, specialty, and community hospitals–and by offering a variety of health-related services and products. With more than 31,800 employees, UPMC Health System is the largest employer in the region. In addition, it is one of the largest not-for-profit integrated health care systems in the United States.

Contact:
Jane Duffield, UPMC Health System, 412-642-2607
DeAnn Marshall, Children’s Hospital of Pittsburgh, 412-692-6470

Last Update
February 20, 2008
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Last Update
February 20, 2008
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