Jameson Health System and St. Francis Hospital, both in New Castle, said Friday they have started merger talks.

In a short news release the hospital systems said they are looking at developing a combined independent health-care system headquartered in and serving Lawrence County. Deloitte and Touch, a national consulting firm, has been hired to study the deal.

No timetable was given for a final decision.

Mercer County hospitals said any deal would have little, if any, effect on them.

"This is probably not completely surprising,'' said John Lewis, chief executive officer of United Community Hospital, Pine Township.

"In these days of declining in-patient volumes, minimizing duplication of services would be a positive,'' Lewis said. "It probably is a benefit to Lawrence County if they can work it out with the medical staffs and the relationship side of it.''

He saw no immediate effect for UCH.

"We think the community of New Castle needs to do what is in the best interest of that community,'' said Kathryn Lima, a UPMC Horizon spokeswoman. "We see very little overlap between the two markets and so we don't anticipate that there would be a significant impact on our market of this move.''

The same sentiment was echoed by Sharon Regional Health System.

"Obviously, the hospitals need to do what's in their best interest,'' said Ed Newmeyer, a Sharon Regional spokesman.