Two years after the state Insurance Department approved Highmark’ sacquisition of West Penn Allegheny Health System and the combined enterprise is “strong and stable financially,” President and CEO David Holmberg told regulators Monday.
“It’s a great success story,” Holmberg said. “The financial health of Highmark is strong and stable.”
Highmark is seeking state Insurance Department approval to inject $175 million into what is now called the Allegheny Health Network for capital improvements. Monday’s hearing was intended to receive public comment on the funding request, which Highmark officials said would not be spent on operating expenses.
AHN’s operating loss of $37 million for 2014 represented a $138 million improvement from the year ending June 30, 2013, and system financials continued to show improvement during the first quarter of 2015, Highmark Health CFO Karen Hanlon said. At the same time, the health plan side of the business broke even in 2014.
Date: May 4, 2015