Upmc and highmark 2018

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UPMC fired back, announcing that it would stop accepting Highmark-insured patients at the end of their existing contract. UPMC also moved aggressively to expand its own health plan. After state officials intervened, the two organizations extended their contract and came up with an agreement that delayed the separation until mid But even though that contract has yet to expire, the Pittsburgh market already has split "into two distinct health-care silos," Johnson writes, with many patients forced to choose sides as they select their insurers and doctors.

UPMC and Highmark both say they're taking the next step in health care's evolution—though they're taking distinct approaches, Johnson reports. UPMC, Johnson writes, is seeking to invent cutting-edge treatments. The system employs engineers, designers, business analysts, and others to come up with and market new technologies.

Highmark CEO David Holmberg, meanwhile, said he wants to focus on providing health care, rather than conducting research. For example, Highmark has created a "health and wellness pavilion," where patients are connected with primary care, outpatient care, cancer services, or other services. How pharmacy can help reduce employee benefit costs. To attract patients amid the ongoing dispute, Johnson writes, both players have focused on new ways to improve consumer convenience.

UPMC uses community health workers to help patients manage chronic conditions. It also opened a cancer-specific ED. Highmark, meanwhile, launched a breathing disorders clinic to provide a hub for patients with complex lung diseases, making appointments more centralized.

Highmark's Wexford center also has a play area with staff to watch children while parents visit a doctor. Romoff argues that, although there's been conflict between the systems, "that's what disruption is about," adding, "And let's be clear about this: Without disruption, change is much, much slower.

But it's not clear that the conflict is actually lowering prices in Pittsburgh, Johnson reports. For instance, while premiums for employer-sponsored plans in the area are below the national average, that also was the case before the market dynamics changes, according to a national medical expenditure survey. Linda Blumberg, a senior fellow at the Urban Institute , said she would expect the trend in Pittsburgh to be lower if the systems were creating efficiencies that bend the cost curve.

At the consumer level, patients aren't yet convinced the new configuration is to their benefit, Johnson reports. As seen in this case, the Pennsylvania AG turned to creative enforcement ideas, namely invoking charitable entity laws, to counter anticompetitive market behavior in the state.

Despite setbacks in court, the state is commendable for continuing to pursue a solution and is ultimately proven victorious, to the benefit of all Pennsylvania patients. UPMC, Pa. Shapiro, M. UPMC , A. Kane v. Download PDF. Amy Y. Gu, Managing Editor. September 16, Showdown at the Courts Reaches an Impasse While the nonprofit charity violation was deemed an easier road to take legally, the ensuing months in court proved anything but.

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These investment levels have attracted the notice of bond rating agencies though they have kept the rating at Aa3 and stable given the strong market position and historically reliable finances and may, therefore, be approaching the upper bound of the possible.

Once it decides to make a deal, I see two obvious options though there may be others [2] :. This option hardly seems feasible given the need to bring 3 to 5 partners together on major incremental capital commitments when only one is facing UPMC and Highmark so far….

Imagine a scenario where WellSpan starts toying with a Highmark alignment and Tower begins turning their current health plan joint venture with UPMC into a broader affiliation. How long can the Philadelphia systems remain agnostic to the structure of the delivery systems to their west? My guess is quite a while actually. Philadelphia is a major market in its own right, much larger than potential referral volume from the Capital District. And, the west seems to play a fairly small role in referrals to Philadelphia care volume.

The Philadelphia systems get more referrals from northeastern Pennsylvania and south Jersey than they do from their western backyard. I see three major scenarios which would make the Philadelphia systems get anxious about the periphery:. In my view, the biggest impact of the Capital District events on Philadelphia systems will be a sense of urgency that the speed with which UPMC and Highmark accomplished the restructuring should inspire.

All that change in a little over a year is remarkable. By the time they get themselves geared up to respond, the market may already have shifted under their feet. Better to be proactive and lock in those northeastern Pennsylvania and south Jersey referrals by more formal affiliations now. There will certainly be more deals like that! Categories: Uncategorized. Cannot wait for the recession!

Nobody HAS to do anything because of these deals. These deals have nothing to do with patients, or patient care. Jeff I am not as curious about WellSpan as I am on the Philly market— the primary focus of the analysis. If those trade routes get choked off or threatened, Philly systems will react. Antitrust aside and I am not sure how that fits in one offensive move could start moving the board. But who makes the first move if it happens?

Of the big three, who has the most to gain and who puts the most at risk. Also, are they paying lower reimbursement rates to their network hospitals and providers than they demand from their other commercial non-government payers? If so, how much lower? Your email address will not be published. Save my name, email, and website in this browser for the next time I comment.

Health Tech Deals. Tweets by THCBstaff. Tory Wolff is managing partner at Recon Strategy. Spread the love. Leave a Reply Cancel reply Connect with:.

Perhaps, as UPMC says, competition will go up and prices down. Perhaps some patients will have trouble finding new doctors or face longer wait times for appointments. The breakup is playing out in millions of lives in often immeasurable ways. In failing to co-exist in a competitive health care environment, Highmark and UPMC have violated a principal tenet of medicine: Do no harm. Source: Post Gazette. We distil the information for you — saving time and keeping you up to date on your interest areas.

Skip to main content. Highlights on this story: The Highmark-UPMC divorce, delayed for several years at the behest of state officials, is set to occur next summer. Just a little bit more about you First Name. Last Name. Email Address.

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