Pittsburgh-based Highmark and West Penn Allegheny Health System have reached a verbal agreement on the terms and conditions of the payor's planned acquisition of the hospital system, according to a Pittsburgh Tribune-Review report.
With the verbal agreement reached, officials now need to sign the agreement before it can go to state regulatory agencies. A West Penn spokesperson said a definitive agreement is expected to be signed "very soon," according to the report, and the report indicated that may be as soon as next week.
Terms of the deal were not disclosed in the report. In previous reports, Highmark planned to acquire West Penn for approximately $500 million.
The parties are also assessing whether West Penn's emergency department and other services will be restored under the acquisition.
The Quiet Takeover: Insurers Buying Physicians and Hospitals
West Penn Allegheny's S&P Rating Goes from Negative to Developing After Proposing Highmark Merger
With the verbal agreement reached, officials now need to sign the agreement before it can go to state regulatory agencies. A West Penn spokesperson said a definitive agreement is expected to be signed "very soon," according to the report, and the report indicated that may be as soon as next week.
Terms of the deal were not disclosed in the report. In previous reports, Highmark planned to acquire West Penn for approximately $500 million.
The parties are also assessing whether West Penn's emergency department and other services will be restored under the acquisition.
Related Articles on Highmark and West Penn Allegheny Health:
Highmark to Absorb West Penn Allegheny's $1B in Debt, Pension ObligationsThe Quiet Takeover: Insurers Buying Physicians and Hospitals
West Penn Allegheny's S&P Rating Goes from Negative to Developing After Proposing Highmark Merger