Following months of dispute, UPMC CEO Jeffrey Romoff said disagreements between his health system and Pittsburgh-based payor Highmark indicate a “divorce,” according to an Erie Times-News report.
UPMC and Highmark officials testified at a public hearing for the Pennsylvania Senate Banking and Insurance Committee. UPMC has refused to discuss a new contract since Highmark announced its plans to acquire West Penn Allegheny Health System, UPMC’s rival in Pittsburgh. UPMC has said it refuses to help fund a competing health system.
“Highmark is no longer a traditional insurer,” Mr. Romoff said, according to the report. “It is not just acquiring West Penn Allegheny, it is becoming West Penn Allegheny.” UPMC plans to terminate physician contracts with Highmark within 60 days of the end of its hospital contracts, which end June 30, 2012.
Still, Highmark requested the committee force the two organizations to continue negotiations. Committee members expressed the small likelihood of that, and said their role in the matter is “even more limited” than initially expected.
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