Saint Vincent Reaches Final Agreement With Highmark

Headquarters of the insurance company in Pittsburgh, , . Address 120 Fifth Ave., Downtown. (Photo credit: Wikipedia)

Editor’s note:  Those folks at Highmark are gobbling up anything that’s not nailed down!

Erie, PA – The future of Saint Vincent Health System is now in the hands of Erie County Orphans’ Court.

Saint Vincent and Highmark Inc. have reached a definitive agreement for the Erie hospital to join Highmark’s integrated delivery system — the newly named Allegheny Health Network.

Saint Vincent would join Jefferson Regional Medical Center and West Penn Allegheny Health System in the network.  The Pennsylvania Insurance Department announced its approval Monday of Highmark’s takeover of West Penn.

“We look forward to joining the Highmark (network) in the very near future, along with Jefferson Regional Medical Center and West Penn Allegheny Health System, as we work to preserve health-care choice and ensure access to the highest level of quality care for residents throughout all of western Pennsylvania,” Saint Vincent Chief Executive Scott Whalen said in a statement.

Read more:

http://goerie.com/article/20130430/NEWS02/304309961/Saint-Vincent-reaches-final-agreement-with-Highmark

Pennsylvania Approves Highmark-West Penn Allegheny Health System Merger

Headquarters of the insurance company in Pittsburgh, , . Address 120 Fifth Ave., Downtown. (Photo credit: Wikipedia)

The Pennsylvania Insurance Department today gave conditional approval for insurer Highmark Inc. to affiliate with the financially ailing West Penn Allegheny Health System, laying the foundation for Highmark’s plans to establish an integrated health care delivery system to compete with UPMC.

Insurance commissioner Michael Consedine, in a release announcing the decision, said, “Our goal from the outset was to have a comprehensive, transparent review in order to make a fully informed and well-founded determination.  We have met that goal.”

In statement, Gov. Tom Corbett said “the goals for the commonwealth are to improve health care access, quality and affordability.  Today’s decision is an important step toward making these goals a reality in Western Pennsylvania.”

Read more: http://www.post-gazette.com/stories/business/news/state-approves-highmark-west-penn-allegheny-health-system-merger-685517/#ixzz2RreWfl90

Highmark CEO Compensation Tops $6M

English: Highmark Place from PNC Park in Pittsburgh, taken 2008 showing the new Highmark branding atop. (Photo credit: Wikipedia)

Last year, Highmark Inc. dished out more than $6 million to compensate its three CEOs.

In compensation figures filed with the state Department of Insurance this month, the state’s largest insurance company said it paid former CEO Kenneth Melani $3.3 million in 2012, even though he was fired April 1.  He was the highest-paid company employee for the year.

In fact, three of Highmark’s 10 highest-paid employees in 2012 are no longer with the company, having left early in the year.  In addition to Dr. Melani, former Highmark legal officer and corporate secretary Maureen Hogel and retired auditor and compliance officer Elizabeth A. Farbacher also had left Highmark by April.

Current Highmark CEO William Winkenwerder Jr., who was hired over the spring and began work July 16, took home $1.87 million in total compensation — $562,712 for his half-year of salary, plus a $1.18 million bonus and $131,000 in “other” compensation.

Read more: http://www.post-gazette.com/stories/business/news/highmark-ceo-compensation-tops-6m-679520/#ixzz2NiolPvSN

West Penn Allegheny Cancels Highmark Affiliation Agreement

English: Highmark Place from PNC Park in Pittsburgh, taken 2008 showing the new Highmark branding atop. (Photo credit: Wikipedia)

Saying that Highmark Inc. wanted it to restructure through bankruptcy, West Penn Allegheny Health System canceled the $475 million deal under which the insurer planned to acquire WPAHS.

WPAHS board chairman Jack Isherwood said in a written statement this morning that he considers bankruptcy a poor option for the health system’s employees and customers.

“To us, bankruptcy is not the first option, it’s the last option,” he said.

WPAHS is actively looking for new partners and is willing to consider all types of companies — another insurer, nonprofit, for-profit.

Senior management will remain in place, Mr. Isherwood said.

Read more: http://www.post-gazette.com/stories/business/news/west-penn-allegheny-cancels-highmark-affiliation-agreement-655295/#ixzz27miMSmWS