Facebook LinkedIn Twitter Vimeo RSS

Highmark, Penn State Health forge partnership

By ,
Penn State Health Milton S. Hershey Medical Center
Penn State Health Milton S. Hershey Medical Center - (Photo / )

Highmark Health and Penn State Health have struck a deal to work together, delivering another big change to the health care market in Central Pennsylvania.

Under the agreement, ratified by the boards of both organizations, Highmark and Penn State Health will share board members and financial resources.

At the center of the partnership are plans for a collective investment by Penn State Health and Highmark Health of more than $1 billion toward the development of a health care network anchored by Penn State Health Milton S. Hershey Medical Center.

"This is a game changer," David Holmberg, president and CEO of Highmark Health said in a statement. "We want to collaborate with forward-thinking partners who, like us, are committed to creating a positive health care experience for members and patients. Penn State Health shares this vision and, together, we’re going to lead the change for a better model of health care in the heart of Pennsylvania."

The arrangement launches Highmark into the position of care provider in Central Pennsylvania, where it faces competition from its Pittsburgh rival UPMC. 

UPMC swooped into the region this year through an affiliation with Harrisburg-based PinnacleHealth System, now known as UPMC Pinnacle. UPMC operates both hospitals and health plans.

Pinnacle and Penn State Health had attempted to merge in 2016 but were blocked by state and federal regulators. Both organizations have now found partners from western Pennsylvania in deals that are reshaping the market in Central Pennsylvania.

Under the terms of the deal, Highmark Health will join Penn State as a member of Penn State Health, with a minority interest, giving it up to three seats on the 15-member Penn State board.

The strategic partnership does not affect patient care or insurance coverage the two organizations said. Penn State Health remains free to contract with other health insurers, while Highmark Health’s payer arm, Highmark Inc., will be free to contract with other hospitals and health systems. Existing agreements with other entities remain unchanged for both.

In their release, they highlighted a goal of positioning themselves as more effective players in the evolving health care market, where payments are increasingly tied not to volume of care but to its quality. The new model is often referred to as value-based care.

They also said they wanted to preserve the role of independent physicians in the health care system.

"This exciting partnership is a commitment by our organizations to ensure that health care delivery in our region remains patient-focused, enhances overall health and wellness and creates increased opportunity for collaboration with community physicians,” said Dr. A. Craig Hillemeier, dean of Penn State College of Medicine and CEO of Penn State Health.

Penn State Health includes Hershey Medical Center, as well as Penn State Children’s Hospital; Penn State Health St. Joseph in Berks County; Penn State Cancer Institute; and Penn State Medical Group. It employs more than 13,000 people, including 1,400 doctors, at more than 100 facilities.

Highmark, which has an office in East Pennsboro Township, employs about 40,000 people. its subsidiaries include Allegheny Health Network, a health system serving western Pennsylvania.

More details are expected Monday. Highmark and Penn State Health plan to hold a press conference to discuss the agreement.

More From This Industry

Joel Berg

Joel Berg

Joel Berg is editor of the Central Penn Business Journal. Born in Philadelphia, raised in Northern Virginia and now living in York, he's a graduate of Franklin & Marshall College and the University of Maryland. Have a question or story idea? Email him at jberg@cpbj.com. Follow him on Twitter, @JoelBYorkPa.

Leave a Comment

test

Please note: All comments will be reviewed and may take up to 24 hours to appear on the site.

Post Comment
View Comment Policy

Comments

mcdvoice July 13, 2018 11:17 am

McDonald’s is one of the most popular fast food joints. It is has become a global brand and is found in almost every popular metropolitan city across the world.

mcdvoice |
mcdvoice.com |
www.mcdvoice.com

sandhosh July 5, 2018 3:27 am

thank you for reading this comment. free robux generator without verification

Watson June 25, 2018 3:00 am

I feel like to peruse this sort of all around looked into the post. This is extremely extraordinary work. Much obliged to you for sharing such a decent and valuable data here in the blog for all Mens Slim Fit Jacket

Watson June 25, 2018 2:59 am

I feel like to peruse this sort of all around looked into the post. This is extremely extraordinary work. Much obliged to you for sharing such a decent and valuable data here in the blog for all Mens Slim Fit Jacket

ketty May 25, 2018 6:09 am

Welcome to the allassignmenthelp.co.uk Reviews , Here you can get the best assignment help review sites. We strongly urge you to check our entire website once and we will assure you will find this review website very useful. Our hard work will be rewarded if students like you will appreciate our effort and spread the message about this site with your class-fellows and friend.
http://assignmentshelpreview.com/all-assignment-help-uk-review/

Steven David April 3, 2018 9:30 am

On the off chance that you have been searching for the best task benefit, you have quite recently discovered the one that can give you quality, you are one of the numerous understudies who assignment writers uk. Educators once in a while considering all the time you have to spend chipping away at inquiring about and paper composing we will give you a solid and tried and true administration that can be benefited by even the most fiscally obliged and disturbed understudies because of our pocket-accommodating and prudent administration charges.

harryjames April 3, 2018 8:40 am

This is really great work. Thank you for sharing such a good and useful information here in the blog for all ngos in sindhanur

Edward William February 28, 2018 12:20 am

I feel like to read this type of well-researched post I am a medical student and I am currently attendant at the University of London, I actually have written an undertaking on branches of medicine with the help of Essay Writing Service UK.

SRHVsRRIPLTickets January 30, 2018 2:58 am

Rajasthan Royals got their first trophy in the first season Of IPL in 2008, and they won’t played last few year because the team involved in IPL betting cases,SRH Vs RR IPL Tickets in 2015 they played two matches with the SRH team in that they win only one game and other one owned by SRH.

SRH VS RR TICKETS

close