Highmark's $50 million down payment on West Penn Allegheny Health System, which it plans to acquire, has bolstered the cash-strapped system into the black and prevented it from shutting down, according to a Pittsburgh Tribune-Review report.
Highmark reported the $50 million as a donation on its most recent financial report, according to the report. Without the grant, West Penn Allegheny would have posted a net loss of $30.4 million — about half the $63.1 million net loss it posted in its previous fiscal year.
Highmark is Philadelphia's largest health insurer. In June, it announced its plans to spend a total of $475 million to acquire the five-hospital system in a bid to boost competition with the region's dominant provider, UPMC.
The boards of directors for Highmark and West Penn Allegheny have reached verbal agreement on the final terms of the acquisition but have not signed it.
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Highmark reported the $50 million as a donation on its most recent financial report, according to the report. Without the grant, West Penn Allegheny would have posted a net loss of $30.4 million — about half the $63.1 million net loss it posted in its previous fiscal year.
Highmark is Philadelphia's largest health insurer. In June, it announced its plans to spend a total of $475 million to acquire the five-hospital system in a bid to boost competition with the region's dominant provider, UPMC.
The boards of directors for Highmark and West Penn Allegheny have reached verbal agreement on the final terms of the acquisition but have not signed it.
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UPMC CEO Jeffrey Romoff: "Highmark is No Longer a Traditional Insurer"