GEISINGER TO JOIN FOLD
Initiative in Pa.’s central region could set up new battleground vs. UPMC
Highmark Inc. and Geisinger Health System have signed a letter of intent on a clinical joint venture in north central Pennsylvania, a move that comes as UPMC has been expanding its reach into the center of the state.
The joint venture, the first of its kind for both parties, will be based in four counties — Lycoming, Clinton, Tioga and Sullivan — with plans to possibly establish a new “comprehensive health campus” in Montoursville, Lycoming County.
Many details of the joint venture remain unknown, including specific terms of the agreement and whether it will require state regulatory approval.
But in a conference call to brief the media Wednesday, officials said the intent is to develop a clinical network model of patient care and reimbursement model that will be a better-value alternative to traditional inpatient hospital stays and outpatient visits.
By working together, “We can bring innovative, consumer-centered care models to the community,” said Deborah Rice-Johnson, Highmark Health Plan president. Highmark and Geisinger, she said, are already closely aligned “in terms of what we think we need to provide for the community.”
The goal is “to take cost out of the system and improve the outcomes of patients,” said Lynn Miller, executive vice president for clinical operations at Geisinger.
If successful, Ms. Rice-Johnson said the model could be expanded to other locations while creating jobs and growing Highmark membership, currently numbering about 200,000 members in the north central area.
Highmark’s plan to enhance its presence in that region will likely spark local interest as the announcement comes just two months after rival UPMC officials said they plan to pursue an affiliation with Harrisburg-based PinnacleHealth System.
“It’s a natural competitive move,” said Stephen Foreman, associate professor of health care administration at Robert Morris University. “They’ve competed in Pittsburgh in every dimension and now they’re going to be competing in the central part of the state in every dimension.”
The UPMC network of more than 20 hospitals has grown in
recent months, as it acquired the four-hospital Susquehanna Health in Williamsport, Lycoming County, last October, and then added WCA Hospital in Jamestown, N.Y., to the network in December.
While not directly saying the Geisinger venture is in response to UPMC’s expansion north and east, “We want to make sure that there is value-based access for our members,” medical center is in said Ms. Rice-Johnson, Danville, Montour County, adding that “we know has its own health plan and what UPMC has done in medical school, The Commonwealth the past, and that is increase Medical College, costs.” in addition to eight
Asked Wednesday for hospitals. Geisinger’s most comment on the Highmarkrecent annual report listsGeisinger announcement, 29,504 employees for the Tracie Witter, healthsystem while recording spokeswoman for $5.5 billion in revenue UPMC Susquehanna, said in fiscal 2016. in part that “our community mindset is moving forward with UPMC.”
Geisinger, whose primary