The Herald, Sharon, Pa.

Local News

July 13, 2013

CEO: Sharon Regional not for sale

Proposed UPMC merger rejected

SHENANGO VALLEY — Over the past month, rumors have swirled that Sharon Regional Health System is for sale and that Pittsburgh-based UPMC had the inside track on the winning bid for the local independent health care provider.

John “Jack’’ Janoso, Sharon Regional’s CEO, and Bill Strimbu, the nonprofit’s chairman, said Friday it is time to put the rumors to rest.

“We are not actively for sale,’’ Janoso said. “We are not seeking a buyer.’’

But, both men acknowledged, talks were held during the past nine months with UPMC about creating joint alliances or “models.’’ UPMC owns UPMC Horizon which has hospitals in Farrell and Greenville.

“The model they proposed was basically to merge with Horizon,’’ Janoso said. “It didn’t meet our guiding principles.’’

In other words, the offer was rejected.

While Janoso didn’t slam the door on future joint ventures, he more than hinted talk about an outright merger is dead.

“UPMC cares about its business model. I care about the community,’’ Janoso said. “I’ve worked my tail off over the past 10 months to try to show and do that.’’

A UPMC spokesman contacted Friday wasn’t familiar with the discussions and didn’t have an immediate response.  

Other opportunities for various partnerships will be looked at and reviewed with other organizations including Highmark and Cleveland Clinic, Janoso said.

Janoso is the third CEO at Sharon Regional in less than two years.

Last September, CEO Linde Finsrud Wilson abruptly resigned with no explanation given. In August 2011, CEO John Zidansek parted ways with the hospital system.

Everyone close to the health provider said the comings and goings have taken a toll on the staff and the board.

“The past couple of years haven’t been our most shinning moments,’’ Strimbu said.

Janoso was picked to fill the CEO chair and, more than anything, Sharon Regional’s board wanted to see staying power at the helm from someone who came up from its internal ranks.

He didn’t have an easy start.

Until recently Sharon Regional was not in a position of financial strength, Janoso and Strimbu acknowledged.

In the fiscal year ending June 30, 2012, Sharon Regional lost nearly 4.5 cents on every dollar of revenue from providing core medical services, according to Fitch Ratings.

For the first six months of the recently ended fiscal year, Sharon Regional’s recorded a net loss, Janoso acknowledged, but he said the last six months showed a profit. Final numbers for the year that ended June 30 are not in yet and he wouldn’t commit on whether the final tally will show a loss or profit.

Barring an “unforeseen circumstance’’ Janoso said he is confident the current fiscal year, which began July 1, will be profitable.

He cautioned the expected improvement in numbers isn’t part of a grand plan to launch Sharon Regional on the market.

“I’m not here to polish the place up and put it up for sale,’’ Janoso said.

Strimbu noted the health care provider’s current budget calls for $8 million in capital improvements with $3 million of that for equipment replacement.

“We’re not in a desperate mode here,’’ Strimbu said.

Talk of building a new $100 million hospital that was championed by Janoso’s predecessor has not merely been shelved, but is now buried and long forgotten. The price tag was thought to be way out of reach.

Instead, the board and Janoso are looking to close a deal this summer to buy the former St. Joseph’s School adjacent to the hospital on East State Street.

Neither man would give details of plans for the property, but both indicated a hospital expansion is clearly in the cards and agreed decisions will remain in local hands.

“We’re still in control of our own destiny,’’ Janoso said.

With around 1,800 employees, Sharon Regional is Mercer County’s largest employer.

1
Text Only
Local News
  • CIRT team in Jackson Center Man arrested after shooting standoff

    One Jackson Center man is recovering from a bullet wound, and the borough resident accused of shooting him sits in jail after a long night of drinking that state police say turned into a case of attempted homicide.

    July 31, 2014 1 Photo

  • Sharon Speedway location City on track for new Speedway store

    Speedway is lining up its administrative and bureaucratic cones on plans for the gas station and convenience store chain to zoom into downtown Sharon.

    July 31, 2014 1 Photo

  • Guards, county OK deal

    County officials and guards at the Mercer County Jail have reached a tentative contract agreement that, if approved, halts the idea of privatizing operations at the facility.

    July 31, 2014

  • Doss: Public has right to know

    A major part of Farrell council’s work session Monday was spent deciding whether or not to inform the audience about an unofficial police proposal from the City of Sharon.

    July 30, 2014

  • Budget falling short despite tax hike

    Farrell residents may have seen an income tax increase this year, but the city isn’t seeing the extra dollars City Manager Michael Ceci budgeted for.

    July 30, 2014

  • oakwood graves 1 Resting together

    Visitors to Oakwood Cemetery would see many  familiar local names if they looked down the hillside to the left just inside the gate on Sharon’s North Oakland Avenue.

    July 30, 2014 3 Photos

  • Police: Kids in car were OK

    The mother of two young children was drunk and passed out when police found them all in a car parked along a city street, Sharon police said.

    July 29, 2014

  • To talk – or not – about police

    The mysterious agenda item, “No. 10,” at Farrell’s council meeting Monday became the center of a heated workshop and business session.

    July 29, 2014

  • Community thanks its first-responders

    Sharpsville honored its emergency responders Sunday at an event that included Mertz Towers residents as special guests.

    July 28, 2014

  • Drilling boom challenges state inspectors

    The state’s 83 well inspectors face a daunting enough challenge keeping tabs on 120,000 active oil and gas wells that have been drilled over the last century.

    July 28, 2014

  • Kidds Mill Covered Bridge A span of time

    Four generations of the Cadman family have enjoyed the Kidds Mill Covered Bridge, which is in Pymatuning Township near where the family’s ancestral farm is located.

    July 28, 2014 3 Photos

  • Intruder hurts woman, takes $5

    A home invasion in Hermitage Friday night sent an elderly woman to the hospital and netted the robber $5.

    July 27, 2014

  • national night out March against crime set for Aug. 5

    At the last Southwest Mercer County Regional Police Commission meeting, Chief Riley Smoot Jr. presented the number of incidents for each of the four communities in May.

    Farrell topped out at 819.

    July 27, 2014 1 Photo

  • high street trail Peaceful pathways

    History buffs and picnickers in the Shenango Valley won’t have to drive to Sharpsville to hang out at the old Erie Canal extension lock. They’ll soon have the option to walk or roll in on bicycles and even powered chairs to visit Canal Park near the outflow of Shenango Dam.

    July 27, 2014 1 Photo

  • balloonquest1 Balloon Quest celebrates 25 years

    Today is the final day of the 25th annual Western Pennsylvania Balloon Quest at Scotland Meadows Park.

    July 27, 2014 1 Photo