Judge Grants Highmark's Request for Injunction Against West Penn

A judge granted Highmark's request for a preliminary injunction against Pittsburgh-based West Penn Allegheny Health System today, according to a Pittsburgh Tribune-Review report.

In her ruling, Allegheny County Common Judge Christine Ward said insurer Highmark did not breach its affiliation agreement with West Penn.

West Penn alleged the health insurer had breached the agreement when it urged the health system to file for bankruptcy to reorganize its debt. West Penn consequently canceled the $475 million merger in late September.

After West Penn nixed the deal, Highmark sought an injunction to prevent West Penn from pursuing other partners. If the judge had found Highmark had breached the agreement, West Penn would have been allowed to keep the $200 million in grants and loans from Highmark. The decision has significant financial implications for West Penn, which recently recorded an operating loss of $112.5 million.

More Articles on West Penn and Highmark:

West Penn Says Highmark Remains "Best-Suited Partner" Despite Weeks of Tension
Highmark Offered West Penn $125M to File for Bankruptcy
Highmark CEO: West Penn Bankruptcy Was Strategy to Boost Odds of Regulatory Approval

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