Highmark to invest $475 million in West Penn deal

Highmark to invest $475 million in West Penn deal

Capital infusion to stave off closure of West Penn hospital

http://www.post-gazette.com/pg/11179/1156765-100.stm

I wonder if this means more (nursing) jobs will be available in the near future. . .

Edited Jun 29, 2011 by NRSKarenRN

[NRSKarenRN, BSN, RN]

The boards that lead Highmark Inc. and West Penn Allegheny Health System have unanimously approved a "capital partnership" in which the area's dominant health insurer will invest up to $475 million into the region's second largest health system, including an up-front $50 million payment that will rescue Bloomfield's West Penn Hospital from what would have been imminent closure.

The deal puts Highmark into the hospital business in a big way, and floats a life preserver to a hospital system that has been losing money each quarter, including a $22 million operating loss in the quarter ending March 31.

UPMC is financially hurting Highmark due to dominence from facilities and expansion into own Health insurance plans. Preservation of current nursing jobs but no real nursing growth forseen.

Edited Jun 29, 2011 by NRSKarenRN

This is good news. I used to work at West Penn, it was a very nice hospital to work at. A Magnet Hospital with dedicated nurses.