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
  • Sharon man 'stable' after being shot in his West Hill home

    A Sharon man was in stable condition this morning after being shot by one of several men he had let into his West Hill home, police said.

    July 23, 2014

  • GJR killer not eligible for parole, court rules

    State Superior Court on Tuesday reversed a local judge’s decision that the sentence for one of two men who killed a night supervisor at George Junior Republic, Pine Township, was unconstitutional.

    July 23, 2014

  • Duplicated files, former worker confesses

    A Mercer woman accused of stealing customer lists, billing information and other data from her former employer headed off trial Monday by pleading guilty to a charge of unlawful duplication.

    July 23, 2014

  • Starved house Vandals vent their emotions

    Vandals kept police busy Sunday and Monday nights at a home in Greenville where the Mercer County District Attorney’s office said a boy was starved and beaten by his mom.

    July 23, 2014 1 Photo

  • Couple, another man charged in thefts

    Pennsylvania State Police have filed charges of burglary, theft, receiving stolen property and criminal mischief against an East Palestine, Ohio, couple and another man in connection with two robberies in rural Mercer County.

    July 22, 2014

  • Taking stock Where’s the beef? Bull’s still missing

    Is it possible that an alien abduction took place in the Mercer area last week? A solid red, 2-year-old Watusi bull with 3-foot-long horns has been missing since July 14 with no trace of its existence left on earth.

    July 22, 2014 1 Photo

  • Buhl Day honorees

    The Buhl Day committee has chosen for this year’s celebration five honored guests whose volunteer work they feel best showcases the legacy of philanthropic work left behind by Frank and Julia Buhl a century ago.

    July 22, 2014

  • GC pair not hurt in accident injuring 2

    Two drivers were taken to a hospital after an accident at the intersection of state routes 965 and 173 in Worth Township, police said.

    July 21, 2014

  • WaterFire crowds WaterFire doused

    Sharon’s WaterFire wasn’t lacking either of its elements on Saturday. There was steady, day-long rain but the day concluded with the Shenango River ablaze.

    July 21, 2014 2 Photos

  • ‘Starved’ boy released from hospital

    A 7-year-old boy allegedly starved and beaten by his mother is out of the hospital and ordered out of his Greenville home by Mercer County Common Pleas President Judge Thomas R. Dobson.

    July 20, 2014

  • WaterFire walking tour Time traveling

    A group of more 50 people walked between the raindrops Saturday during an historical tour of downtown Sharon during the city’s WaterFire celebration.

    July 20, 2014 6 Photos 1 Story

  • News briefs from July 19, 2014

    Michigan man charged with assaulting girl here

    Sharon man charged with raping woman

    July 19, 2014

  • For sale Realty transfer tax hike headed for ballot

    Sharon voters will be deciding through a referendum whether city council can raise the realty transfer tax. Council gave first reading Thursday to an ordinance that phrases the question that will be printed on the November ballot.

    July 19, 2014 1 Photo

  • Bella recovering Vet: Dog lucky to be alive, should survive

    Although a veterinarian said an underweight dog found Thursday with a gruesome neck wound was lucky to be alive, her prognosis for recovery is good.

    July 19, 2014 2 Photos

  • Alleged hit-run driver arrested

    Sharon police said Friday afternoon they had arrested a man believed to have driven a vehicle that struck an 11-year-old boy Thursday and left the scene.

    July 19, 2014