Thirteen months after the two parties penned an affiliation agreement, the Pennsylvania Insurance Department is requesting more specific information about Pittsburgh-based health insurer Highmark's $475 million acquisition of West Penn Allegheny Health System, according to a Pittsburgh Business Times report.
Deputy Insurance Commissioner Stephen J. Johnson wrote a letter to Highmark, saying that "while the department is encouraged that the parties are working together, the department can't evaluate a hypothetical transaction or one that is not in final form," according to the report.
Highmark and West Penn returned to the negotiation table in November after a major hiatus this fall, when the financially ailing health system called the deal off.
Highmark's proposed acquisition plan will expire in April 2013 if the insurance department does not grant approval by that time.
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Deputy Insurance Commissioner Stephen J. Johnson wrote a letter to Highmark, saying that "while the department is encouraged that the parties are working together, the department can't evaluate a hypothetical transaction or one that is not in final form," according to the report.
Highmark and West Penn returned to the negotiation table in November after a major hiatus this fall, when the financially ailing health system called the deal off.
Highmark's proposed acquisition plan will expire in April 2013 if the insurance department does not grant approval by that time.
More Articles on Highmark and West Penn:
West Penn Says Highmark Remains "Best-Suited Partner" Despite Weeks of TensionLayoffs, Reduced Services Loom for West Penn Allegheny
Highmark CEO: West Penn Bankruptcy Was Strategy to Boost Odds of Regulatory Approval