UPMC's president told state legislators this morning his institution would never negotiate a new contract with Highmark, the region's largest provider of health insurance.

"This is not a negotiating ploy but rather an inevitable decision dictated by the realities of competition," Jeffrey Romoff told about two dozen House members gathered at the Allegheny County Courthouse.

The deal-breaker was Highmark's announced plan to take over the West Penn Allegheny Health System, he said. That plan would make Highmark a direct competitor with UPMC, he said.

The legislators heard from a dozen speakers during a four-hour public hearing on the Highmark-UPMC dispute called by the House Insurance Committee.

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» Read Jeffrey Romoff's prepared remarks to the state House Insurance Committee.

» Read Dr. Kenneth Melani's remarks to the state House Insurance Committee.

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Those testifying at the hearing included the state's deputy insurance commissioner, Randy Rohrbaugh. He told legislators that his department had no power to force the two parties to come to an agreement.

The University of Pittsburgh Medical Center, which operates 20 hospitals in Southwestern Pennsylvania, has announced that Highmark insurance customers would no longer be "in-network" for UPMC facilities and its doctors after the current contract expires next year.

Rep. Curtis Sonney, R-Erie, chaired today's hearing. He said legislators gathered in Downtown Pittsburgh to determine "what regulatory role Pennsylvania has in a dispute between the region's dominant health care provider and the dominant health insurer."

He said the insurance committee would hold additional hearings on the topic in the coming months.

More details in tomorrow's Pittsburgh Post-Gazette.