Geisinger Health System, Highmark planning joint venture
Geisinger Health System, Danville, Pa., and Highmark Health, the Blue Cross and Blue Shield affiliate and hospital system based in Pittsburgh, last week signed a letter of intent to form a joint venture.
Under the agreement, the two organizations will explore ways to improve healthcare services and lower costs for patients in north central Pennsylvania. The two are focused on improving population health through value-based payment models.
The partnership will initially focus on the construction of a new facility in rural Montoursville. Both organizations will monitor its success and look to expand services to more areas. The partnership will impact about 65,000 Highmark members that live in north central Pennsylvania, including Medicare Advantage members.
Highmark’s rival UPMC Health Plan entered into a similar venture last year with Reading (Pa.) Health System. Highmark President Deb Rice-Johnson said the agreement with Geisinger will allow it to better compete with UPMC.