UPMC official says system may not renew Highmark contract
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The chief financial officer for the University of Pittsburgh Medical Center said today that he does not expect the region's largest health system to renew its contract with Highmark when it expires next year, based on the insurer's statements that it might enter the local provider market by acquiring the West Penn Allegheny Health System.
"We are preparing to compete. That's what we're doing," said Robert DeMichiei. And, because of the growth of its own insurance plan, UPMC Health Plan, Mr. DeMichiei said they believe they will have the ability to compete successfully.
His comments came as insurer Aetna announced it had reached an agreement with UPMC that will include all UPMC hospitals and affiliated physicians in its Western Pennsylvania network for the first time since 2001.
Last month, Highmark Inc. CEO Kenneth Melani said the insurer would be open to partnering or buying West Penn Allegheny if contract talks with UPMC were unsuccessful.
Regardless of whether UPMC and Highmark ultimately reach an agreement, said Mr. DeMichiei, "it will be a different market. It will be a market with a lot of choices."
Highmark spokesman Michael Weinstein on Thursday said the insurer "has and will continue to seek to negotiate new contract terms with UPMC, but to date UPMC has refused to do so."
First Published May 5, 2011 3:31 pm
