Pennsylvania Senator Says Highmark is Trying to Lure Physicians, Referrals Away From Community Hospitals

A Pennsylvania senator has accused Pittsburgh-based health insurer Highmark of incentivizing Excela Health physicians to lure their patients away from community hospitals and to West Penn Allegheny Health System facilities, according to a Pittsburgh Tribune-Review report.

Sen. Kim Ward (R) said Highmark's pending $475 million acquisition of West Penn will ultimately harm community hospitals like those part of Greensburg, Pa.-based Excela. Specifically, she said the payor is motivating Excela physicians to refer patients to Forbes Regional Hospital in Monroeville, which is part of West Penn.

Highmark Executive Vice President Deborah Rice denied the accusation, saying the payor is not interested in moving patients away from community hospitals. "We've made it clear to Excela's leadership that Highmark has no plans to recruit physicians currently employed by Excela, and we would like to work with them on partnerships with independent physicians," Ms Rice said in the report.

Sen. Ward also said Highmark is using shell companies to purchase land and medical practices. "Even the physicians are under a fake name," Sen. Ward said in the report.

So far, Highmark has spent $32 million in land acquisitions to develop provider facilities.

More Articles on Highmark and West Penn Allegheny Health System:

Highmark Updates Paperwork for West Penn Allegheny Purchase
Moody's: West Penn Needs More Than $475M From Highmark to Survive
Jefferson Regional in Pennsylvania to Partner With Highmark


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