Officials announced Oct. 4 that Aramark would replace ServiceMaster as the University Medical Center's management service. Aramark will buy ServiceMaster's worldwide management division for $800 million in cash.
ServiceMaster provides the University Medical Center with managers that oversee a variety of operations, with a focus on food services.
Over the last several years, Aramark has been making a concerted effort to acquire businesses in the food and drink industry. The company has 185,000 employees working in 16 countries.
ServiceMaster recognized that it was unable to support its management services division after completing a strategic portfolio review, according to ServiceMaster spokesman Steve Bono.
The review outlined "how we want to be arranged as a company going forward," Bono said. He continued by saying that it became apparent the company was running two businesses: home service and business service.
"We did not have enough money for both businesses," and decided the home service business would be most profitable, Bono said.
Therefore, the hospital management service, falling into the business service category, is set for replacement.
According to Bono though, all hospital ServiceMaster employees will keep their jobs.
"No ServiceMaster folks will be replaced," he said. "Aramark is only a parent company, if you will."
He added that for employees the only noticeable distinction between ServiceMaster and Aramark would be in the origination of their paychecks.
University spokeswoman Louise Dudley said she agreed with Bono.
"I don't expect any changes. When one company buys another, that contract will generally be honored," Dudley said.
The management service provided by ServiceMaster supplies a team of five to 10 managers who are experts of a particular discipline, Bono said.
"Our people are the managers and the hospital provides the staff," he said.
In addition to the new management job, Aramark Corporation also is in charge of food services at the University dining halls. Its 1999 contract states that all employees who worked for the University when the contract began were able to keep their jobs and the same salaries.
In the last year though, Aramark dining service employees have been fighting to gain access to the living wage salary enjoyed by University employees. Under current University policy, contracted workers do not automatically receive a living wage of $8.
Aramark Corporation spokeswoman Lisa Jacobs said that, because of legal restrictions, she could not provide additional details on the transaction at this time.
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