Pittsburgh-based health insurer Highmark is giving Jefferson Regional Medical Center an "unrestricted" $21 million upon finalization of its affiliation agreement, which is expected within the next three weeks, according to a Pittsburgh Post-Gazette report.
Highmark and Jefferson Regional, based in Jefferson Hills, Pa., signed an affiliation agreement in August 2012. Highmark has promised the provider network capital improvements totaling up to $100 million in grants. Under the affiliation agreement, those improvements are to be completed within the first three years of the affiliation.
Of the $100 million, Jefferson will get the unrestricted $21 million right away. The remainder of the grant will be made available only if the medical center cannot pay for the capital investments through its own "enhanced cash flow," according to the report. The insurer said Jefferson's cash flow should be improved through the creation of additional service lines and Highmark's tiered insurance product design, according to the report.
Jefferson is one of the latest developments in Highmark's developing provider network. The insurer has also been working to acquire Pittsburgh-based West Penn Allegheny Medical Center to better compete with healthcare giant University of Pittsburgh Medical Center. That acquisition was recently projected to cost Highmark more than $1.6 billion.
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Highmark and Jefferson Regional, based in Jefferson Hills, Pa., signed an affiliation agreement in August 2012. Highmark has promised the provider network capital improvements totaling up to $100 million in grants. Under the affiliation agreement, those improvements are to be completed within the first three years of the affiliation.
Of the $100 million, Jefferson will get the unrestricted $21 million right away. The remainder of the grant will be made available only if the medical center cannot pay for the capital investments through its own "enhanced cash flow," according to the report. The insurer said Jefferson's cash flow should be improved through the creation of additional service lines and Highmark's tiered insurance product design, according to the report.
Jefferson is one of the latest developments in Highmark's developing provider network. The insurer has also been working to acquire Pittsburgh-based West Penn Allegheny Medical Center to better compete with healthcare giant University of Pittsburgh Medical Center. That acquisition was recently projected to cost Highmark more than $1.6 billion.
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