Highmark purchased Pittsburgh-based Allegheny Health Network, formerly West Penn Allegheny Health System, in April 2013. As part of the deal, Highmark was required to seek permission from the state to make cash transfers of a certain size to the health network, according to the report.
In a March 9 letter to the Pennsylvania Insurance Department, Highmark asked to transfer $175 million to Allegheny Health Network to be used for capital projects. Although Highmark asked the state to approve the grant by March 15, a spokeswoman for the company told the Pittsburgh Post-Gazette “there is no significance to that date.” She also said Highmark began speaking to the state insurance department about the capital investment in December 2014.
Ron Ruman, a spokesman for the Pennsylvania Insurance Department, acknowledged there was a discussion regarding the request prior to the department receiving the recent letter from Highmark. However, he said the letter was necessary for the “formal process” to begin, according to the report.
The insurance department and the contractors who are charged with monitoring the transaction between Highmark and West Penn Allegheny Health System must review Highmark’s request. Mr. Ruman told the Pittsburgh Post-Gazette the state insurance department doesn’t have a timeline set for approving the request.
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