Highmark’s acquisition of West Penn Allegheny Health System in Pittsburgh is still under regulatory review after the state insurance department issued a request for new information — nine weeks before Highmark’s affiliation agreement with West Penn is due to expire.
Highmark claims UPMC is engaged in a campaign to sour the payor’s acquisition of West Penn, distributing an analysis of the pending transaction to community leaders, legislators and others upon their request, according to the report.
In the analysis documents, UPMC says the creation of Highmark’s envisioned provider network would cost $2.4 billion. But UPMC claims Highmark reported a cost of $1.6 billion in its insurance department filings, according to the report. UPMC also called Highmark’s move into the provider side a “remarkable and extremely high-risk commitment,” according to the report.
Highmark’s provider agreement with UPMC expires Dec. 31, 2014. Although UPMC has said the contract will not be renewed, Highmark “continues to press” for a new deal, according to the report.
More Articles on Highmark and UPMC:
Highmark Seeks Injunction Against UPMC to Stop Sharing Confidential Documents
Moody’s to Scrutinize Highmark’s Credit Following West Penn Debt Deal
West Penn-Highmark Transaction Costs to Surpass $1.6B
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