Highmark to acquire a healthcare system

As hospitals continue to merge, acquire and consolidate to manage spiraling healthcare costs, they may soon find unlikely business partners: health insurers. In the most recent move to integrate those who provide medical care and those who pay for it, Pittsburgh-based West Penn Allegheny Health System will be acquired by health insurer Highmark Inc., reports the Wall Street Journal. Under the deal, the insurer would pay doctors' salaries, offering incentives for meeting quality and efficiency goals. According to Highmark officials, the deal will also allow West Penn to stay in business. "It brings our expertise as an insurance company into the provider system," Highmark CEO Kenneth R. Melani told the WSJ. Article

Suggested Articles

The profit margins and management of Community Health Group raise questions about oversight of managed care insurers.

Financial experts are warning practices about the pitfalls of promoting medical credit cards to their patients.

A proposed rule issued by HHS on Tuesday would expand short-term coverage, a move Seema Verma said will have "virtually no impact" on ACA premiums.