Sales agree­ment close for West Penn, High­mark

Modern Healthcare - - LATE NEWS -

West Penn Al­legheny Health Sys­tem and High­mark are close to reach­ing a de­fin­i­tive agree­ment re­gard­ing the health in­surer’s pro­posed ac­qui­si­tion of the Pittsburgh-based health sys­tem. A West Penn Al­legheny spokesman said a de­fin­i­tive agree­ment should be reached soon, but de­clined to pro­vide additional in­for­ma­tion about the time frame. High­mark, also based in Pittsburgh, an­nounced plans to ac­quire West Penn in June (July 4, p. 6). As part of the deal, High­mark said it would pro­vide the five-hos­pi­tal sys­tem with a $50 mil­lion grant and $75 mil­lion ed­u­ca­tion grant, and would in­vest an additional $350 mil­lion over the next four years. At the time, the par­ties said they ex­pected to sub­mit a reg­u­la­tory fil­ing to the Penn­syl­va­nia In­sur­ance Depart­ment within two months. It has not yet been filed. UMB Fi­nan­cial Corp. said in a pub­lic state­ment dated Oct. 20 that re­quests from the mas­ter trustee for in­for­ma­tion about the deal have been de­nied by West Penn Al­legheny and there have been no pub­lic no­tices about when the agree­ment will be signed or why the process has been ex­tended. “Con­se­quently, while the Mas­ter Trustee be­lieves that dis­cus­sions are on go­ing, there is no as­sur­ance that such is the case,” ac­cord­ing to the doc­u­ment. West Penn Al­legheny asked for $9.7 mil­lion in Septem­ber from the bond trustee for ex­penses in­curred dur­ing the pre­vi­ous nine months. UMB said its sub­se­quent re­quests for in­for­ma­tion about the req­ui­si­tion have not been an­swered. West Penn Al­legheny is gath­er­ing de­tails to re­spond to UMB, ac­cord­ing to the spokesman.

High­mark would pro­vide West Penn, above, with grants and in­vest­ments.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.