West Penn CEO May Step Down Next Week

The interim president and CEO of financially troubled West Penn Allegheny Health System in Pittsburgh may step down next week after one year at the helm, according to a Pittsburgh Tribune-Review report.

Keith Ghezzi, MD, testified in court today as part of health insurer Highmark's lawsuit against West Penn. He said he and West Penn's board have been considering the possibility of a change in management once his contract expires Nov. 6. The interim leader said his relationship with Highmark's management is tense and acknowledged some West Penn physicians' dissatisfaction with his leadership, according to the report.

Dr. Ghezzi also said trust was "severely eroded" between Highmark and West Penn after the April 1 firing of the Highmark's former CEO, Kenneth Melani, MD. He said West Penn is open to returning to negotiations with the payor, but with precautions.

West Penn called off its pending $475 million merger with Highmark Sept. 27 over what it claimed was a breach in the affiliation agreement. Highmark sued West Penn shortly after to protect its investments in the health system and to prevent West Penn from merger discussions with other companies. Today marks the third day of testimony in that suit.

More Articles on Highmark and West Penn Allegheny:

West Penn Allegheny Health System's Operating Losses Top $112M
Fitch Downgrades West Penn Bonds to "CCC"
Highmark Offered West Penn $125M to File for Bankruptcy






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