In this video, David Holmberg, CEO of Pittsburgh-based health insurer and integrated delivery system Highmark Health, discusses its long and fierce battle with the University of Pittsburgh Medical Center for the region’s healthcare market. Among other things, the says the intense competition has helped build innovation at Highmark.
The giant Pittsburgh-based UPMC health system faces lower patient volume, overshadowing membership growth in its insurance business. Rising expenses and large investment losses have also darkened its financial picture.
Meanwhile, Modern Healthcare reports that UPMC continued to “disentangle itself from Highmark, one of its largest nongovernment payers as well as a bitter rival since the insurer’s 2013 takeover of nearby West Penn Allegheny Health System.”
“UPMC continues to await a decision from the Pennsylvania Supreme Court on whether it can terminate its Medicare Advantage contracts with the Highmark insutas of Jan. 1. The system has sought to completely sever ties with the insurer, but has been blocked by political pressure and resistance from Highmark itself.”
UPMC reported an operating surplus of $72 million on $3.1 billion in revenue in fiscal 2016’s first quarter, down from $93 million on $2.9 billion during fiscal 2015’s first quarter.
Jeffrey Romoff, $6.6 million CEO of giant UPMC, in Pittsburgh, dreams of a “doctor-less future,” reports Roy Poses, M.D., of Healthcare Renewal.
