The University of Pittsburgh Medical Center insists it will not renew its contract with insurer Highmark after their current agreement expires on June 30, 2012, according to a Pittsburgh Business Times report.
Earlier this week UPMC, which controls 57 percent of providers in Allegheny County, according to the report, released a list of "transition issues" to address before its contract with Highmark expires. UPMC was asked to create the list by Pennsylvania State Sen. Don White, who serves as chairman of the Senate Banking and Insurance Committee. Highmark refused to discuss end-of-contract issues, urging UPMC to instead "come to the table to negotiate a new contract with Highmark," according to the report.
UPMC stopped negotiations with the insurer after it announced plans to acquire struggling West Penn Allegheny Health System for $475 million and said it refuses to help fund a competing health system.
Interestingly, West Penn Allegheny previously filed a suit against Highmark and UPMC alleging the two colluded to monopolize healthcare services in the market. In 2009 a district judge dismissed the suit, which was overturned on appeal. Earlier this week, the Pennsylvania Supreme Court declined to hear the case, sending the case back to the district judge. However, the future of the case remains somewhat unclear in light of Highmark's plans to acquire West Penn.
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Earlier this week UPMC, which controls 57 percent of providers in Allegheny County, according to the report, released a list of "transition issues" to address before its contract with Highmark expires. UPMC was asked to create the list by Pennsylvania State Sen. Don White, who serves as chairman of the Senate Banking and Insurance Committee. Highmark refused to discuss end-of-contract issues, urging UPMC to instead "come to the table to negotiate a new contract with Highmark," according to the report.
UPMC stopped negotiations with the insurer after it announced plans to acquire struggling West Penn Allegheny Health System for $475 million and said it refuses to help fund a competing health system.
Interestingly, West Penn Allegheny previously filed a suit against Highmark and UPMC alleging the two colluded to monopolize healthcare services in the market. In 2009 a district judge dismissed the suit, which was overturned on appeal. Earlier this week, the Pennsylvania Supreme Court declined to hear the case, sending the case back to the district judge. However, the future of the case remains somewhat unclear in light of Highmark's plans to acquire West Penn.
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