Insurer’s Plan To Purchase Hospital Could Signal Trend
Pittsburgh-based insurer Highmark recently reached an agreement to acquire West Penn Allegheny Health System for as much as $475 million, a move that will be closely watched nationwide as insurers and health care providers consider how best to control spending. Although some health plans have purchased clinics and many hospitals have payment models that mimic insurance plans, insurers typically have avoided purchasing hospitals because they are large investments that pose operating challenges. However, with health spending on the rise, insurers and health care providers might turn to affiliation as a cost-cutting strategy.
- "Insurer's Cost-Cut Plan: Buy Hospitals" (Mathews, Wall Street Journal, 6/29).
- "Highmark, West Penn Plan Affiliation" (Lee, Modern Healthcare, 6/28).