Pittsburgh-based Highmark, an insurer, will spend up to $500 million on a new network of physicians, community hospitals and outpatient care locations — an investment in addition to its $475 million takeover of West Penn Allegheny Health System, according to a Pittsburgh Tribune-Review report.
In total, Highmark is spending nearly $1 billion in its transition to become a healthcare provider. It's acquisition of West Penn still awaits regulatory approval, but it has already injected $175 million in the struggling system. Regulatory approval is expected by July.
A Highmark spokesperson said the payor believes the investment "is crucial to address the unsustainable increases in healthcare costs that are making health insurance less affordable," according to the report. Highmark President Ken Melani, MD, has also been meeting with West Penn physicians and others about a strategy to compete with UPMC, the system's local and dominant rival.
The latest investment of $500 million will go towards medical malls, ambulatory service centers, a health information exchange, partnerships with community hospitals and primary and specialty care centers, according to the report.
Highmark to Invest $20M in West Penn Allegheny's Forbes Hospital
Highmark Affiliates With 60-Physician Medical Group
In total, Highmark is spending nearly $1 billion in its transition to become a healthcare provider. It's acquisition of West Penn still awaits regulatory approval, but it has already injected $175 million in the struggling system. Regulatory approval is expected by July.
A Highmark spokesperson said the payor believes the investment "is crucial to address the unsustainable increases in healthcare costs that are making health insurance less affordable," according to the report. Highmark President Ken Melani, MD, has also been meeting with West Penn physicians and others about a strategy to compete with UPMC, the system's local and dominant rival.
The latest investment of $500 million will go towards medical malls, ambulatory service centers, a health information exchange, partnerships with community hospitals and primary and specialty care centers, according to the report.
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UPMC Says West Penn is Withholding Details of Highmark TakeoverHighmark to Invest $20M in West Penn Allegheny's Forbes Hospital
Highmark Affiliates With 60-Physician Medical Group