Penn State Health partners with Highmark Health

Penn State Health has partnered with Pittsburgh-based Highmark Health.

The partnership was unveiled at Penn State Health’s December board of trustees meeting. Board members voted unanimously in favor of the partnership.

The move follows a statewide trend of health care provider mergers and alliances.

Penn State Health was established in 2015 as an effort to expand Penn State Hershey Medical Center. Highmark Health is both a health care service and health insurance provider.

Highmark’s rival — University of Pittsburgh Medical Center — has already moved into the midstate region, having completed a merger with Pinnacle Health in September.

Highmark and UPMC are locked into a consent decree, which requires them to grant in-network coverage to those covered by the rival insurer.

The consent decree is the result of a bitter feud between the two health providers that began in 2013 when Highmark announced it planned to acquire West Penn Allegheny Health System, leading UPMC to say it would not renew its contract with Highmark. Regulators worked with the two health providers to form a consent decree, which is set to expire in 2019.

At the meeting, officials said Penn State Health will retain its agreements with other health insurers.

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As a note of disclosure, Transforming Health receives financial support from Penn State Health.