Leaders from Penn State Health and Highmark Health have announced plans for an innovative strategic partnership aimed at securing the future of health care in central Pennsylvania. These plans center around a collective investment by Penn State Health and Highmark Health of more than $1 billion toward the development of a high-value, community-based health care network, which will be anchored by the advanced care provided by the Milton S. Hershey Medical Center.
The new strategic partnership is focused on improving access, quality and affordability of health care close to home for people across southcentral Pennsylvania, while creating new opportunities for medical education and research. Core to that vision is the creation of a community network to support the population health and local needs of patients and members. This value-based approach will reimburse health care providers for the quality of care they provide rather than for the volume of services, as part of a strategy to reform how quality health care is delivered and paid for.
Highmark Health will also join Penn State as a member of Penn State Health, with a minority interest, that will provide up to three seats on the 15-member Board of Directors. Both organizations received respective board approvals to move ahead with this new strategic partnership.
To communicate this exciting news to your clients:
- View the official press release
- Download Talking Points (or see below!)
- Visit www.TogetherForPA.com to hear a personal video message from Health Plan President, Deb Rice-Johnson
If you have questions regarding this announcement, please contact your Highmark Sales Executive or Client Manager.
TALKING POINTS:
Highmark Health Joins Forces with Penn State Health
Overview
On Dec. 15, 2017, two of Pennsylvania’s leading health organizations, Penn State Health and Highmark Health, announced plans for an innovative strategic partnership aimed at securing the future of health care in the region.
At the heart of the new strategic partnership are plans for a collective investment by Penn State Health and Highmark Health of more than $1 billion toward the development of a high-value, community-based health care network designed to keep care local and enhance collaboration with community physicians. The network will be anchored by the advanced care provided by the Milton S. Hershey Medical Center, the region’s only university teaching and research hospital.
The new Penn State Health and Highmark Health strategic partnership is focused on improving access, quality and affordability of health care close to home for people across a 27-county region of Pennsylvania, while creating new opportunities for medical education and research. Central to that vision is the creation of a community network to support the population health and local needs of patients and members. This value-based approach will reimburse health care
providers for the quality of care they provide rather than for the volume of services, as part of a strategy to reform how quality health care is delivered and paid for.
Highmark Health will join Penn State as a member of Penn State Health, with a minority interest, that will provide up to three seats on the 15-member Board of Directors. Both organizations received respective board approvals this week to move ahead with this new strategic partnership. Goals of the strategic partnership include:
– Development of a value-based, community care network, including new facilities, to ensure patients and members in central and southcentral Pennsylvania are in close proximity to needed primary care, specialty care and appropriate acute care hospital settings.
– Reinforce the role of the Milton S. Hershey Medical Center and Penn State Children’s Hospital as the premier destinations for advanced care in the region for adults Development of advanced population health management capabilities, analytics and care models to more effectively manage chronic conditions, enhance health and wellness, deliver improved outcomes and a lower total cost of care for patients, members and the community.
– Exploration and development of innovative and patient-focused health care insurance
products.
– Expansion of support for Penn State College of Medicine through funding for medical and health sciences education, and advanced research.
Independent community physicians will be a foundational part of the Penn State Health and Highmark Health approach to community-based care.
The strategic partnership between Penn State Health and Highmark Health does not affect patients’ care or insurance coverage. Under the terms, Penn State Health remains free to contract with other health care insurance companies, now and in the future. Penn State Health’s existing health insurance agreements will remain in place. Likewise, Highmark will be free to contract with other hospitals and health systems, and its existing agreements with other health care providers in the region will remain unchanged.
Q&A
1. What is the reasoning behind this affiliation? How will this affiliation benefit both organizations?
Penn State Health is s a nationally-recognized, high-quality health care delivery system and academic medicine and research Center. Highmark Health is the second largest integrated delivery network (IDN) in the country based on consolidated revenue, and Highmark Blue Shield is the fourth-largest capitalized and overall Blue Cross and Blue Shield-affiliated organization in the nation. Both organizations are part of the fabric of this community and see a significant opportunity to work more closely together in a meaningful way to enhance access to the full spectrum of care and accelerate value-based care delivery for the community.
2. What makes this relationship unique?
Bringing together two incredibly reputable, Pennsylvania institutions like Highmark Health and Penn State Health is highly distinctive. Having these two very complimentary organizations laser-focused on creating new high-quality, affordable and accessible care delivery models is matchless.
3. How will this affiliation benefit patients and the community? How will this affiliation address quality and affordability of care?
Through this affiliation, we will address access to care in the community through the ongoing development of community-based care locations, anchored by the Milton S. Hershey Medical Center. We will address the quality and affordability of care by leveraging new health insurance product designs focused on community care and inspired by a model of care that is value-based that incents providers to deliver the most cost-effective, high-quality care in the most appropriate setting.
4. What is value-based care?
Value-based care is a model of health care delivery where health providers are reimbursed/paid for the overall quality and value of the care they provide to patients
rather than the amount of care they provide. This model is ultimately better for patients because it puts the emphasis on how well physicians and hospitals care for their patients over time.
5. What value can health care consumers expect to see from this transaction?
Consumers can expect greater access to high-quality, affordable health care closer to home.
6. How will the community know that the affiliation is good for them?
Consumers will see value through the benefits of having access to high-quality, affordable care.
For more information, please contact your Highmark Sales Executive or Client Manager.
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