Looks like this deal is a go, folks. Here’s the release from Hamot.

Is this good or bad?

The Hamot Health Foundation Board of Trustees today signed a letter of intent to negotiate an affiliation with the University of Pittsburgh Medical Center (UPMC), an exciting and significant step toward a formal affiliation between two of the region’s outstanding medical institutions that will advance healthcare for the people of Erie and its surrounding communities.

Hamot’s Board, comprised of elected community members, made this decision to move forward with an affiliation with UPMC following a multi-year study of the future of healthcare in the region and several months of detailed discussions with UPMC. Hamot and UPMC have agreed to conditions of a prospective affiliation that would secure and advance healthcare for Erie and its surrounding communities, support and strengthen Hamot’s current position as the region’s leading tertiary care provider and provide Hamot with a substantial financial investment of $300 million that will support expansion and enhancement of medical services for the communities Hamot serves.

“I am very pleased with the decision our Board has made today. UPMC is a world-class academic medical center that shares Hamot’s commitment to superior quality patient care and our vision for the future,” said B. Scott Kern, Chairman, Hamot Board of Trustees. “An affiliation with UPMC will result in positive outcomes for Hamot, our patients, and the entire region.”

“Hamot and UPMC have had a long-standing and cooperative relationship,” said Elizabeth B. Concordia, Executive Vice President, UPMC and President, Hospital and Community Services Division. “We are committed to the continued growth and elevation of services and to enhancing Hamot’s established role as the region’s leading tertiary care provider.”
For more than two years, Hamot’s Board has been engaged in a rigorous forward-thinking process, during which it has explored the challenges facing our healthcare system, and evaluated Hamot’s opportunities to continue to provide nationally recognized care while managing evolving healthcare and economic climates.

“We have been looking for a collaboration that would enable Hamot to increase clinical pathways and gain access to capital, technology, science and expertise,” said John Malone, president and CEO, Hamot Health Foundation. “Our board has determined that an affiliation with UPMC will provide significant benefits to the community by combining Hamot’s inherent strengths and community focus with the economies and innovation found in a world-class healthcare system.”

The signing of a non-binding letter of intent signifies the beginning of a due diligence period between the two organizations.

Hamot continues to gather feedback and answer questions about its affiliation process through meetings with community leaders, physicians, employees and through its website, www.hamot.org.