Highmark, Penn State, Penn State Hershey Medical Center announce 10-year partnership

Highmark, Penn State, Penn State Hershey Medical Center announce 10-year partnership

Areas of collaboration include expansion of clinical research, support for a new children's hospital, development of community health initiatives and prevention and wellness programs

Hershey, Pa. -- Highmark Inc., Penn State University and Penn State Milton S. Hershey Medical Center today (March 7) announced a comprehensive agreement that will improve the quality of health care and increase access and affordability of services for the people of central Pennsylvania and the Commonwealth.

The 10-year agreement encompasses a number of components including investment in clinical research for diseases such as cancer and a new state-of-the-art children's hospital, as well as the collaborative development of community health initiatives including the study and enhancement of wellness and prevention programs. As part of this new agreement, Highmark will administer the health-care benefits for employees of Penn State University and Penn State Hershey Medical Center beginning Jan. 1, 2008. The agreement also ensures that the Medical Center will remain part of the Highmark network of hospitals and providers for the next decade.

"This ground-breaking partnership provides increased access to health care services for our Penn State employees and their families across the Commonwealth, while advancing vital research and investing in new facilities that will ultimately benefit the health of everyone we serve," said Penn State University President Graham Spanier. "Through this agreement, Highmark, Penn State and its Medical Center have committed to addressing key health-care issues together, and we are extremely grateful to Highmark for its commitment to innovation and cooperation."

"The challenges in health care are tremendous and I truly believe many of the key players need to find ways to work together. The idea of Penn State, the Medical Center and Highmark working together is very exciting," said Kenneth R. Melani, president and CEO of Highmark Inc. "Highmark has a long history of supporting children as part of our community mission and this initiative continues that tradition. The Children's Hospital will be a great resource for families in the region."

Harold L. Paz, Penn State's senior vice president for health affairs, dean of Penn State College of Medicine and Medical Center CEO said the partnership will not only enhance academic and clinical programs at the Medical Center in Hershey, but will have a positive impact on other hospitals within the region. The combination of Highmark's investment and Penn State's research infrastructure will increase the ability of community hospitals and regional medical centers to participate in clinical research, specifically clinical trials for cancer. The development of the new Children's Hospital will increase available hospital beds and services for children in need of highly specialized care who may currently be sent out of the area.

"Highmark's investment truly enables the expansion of services to meet the growing health care needs of the region," said Paz. "The challenges facing health care are complex and can only be solved through collaboration. This agreement gives the partners 10 years to focus our collective resources on improving health outcomes, increasing the availability of leading-edge treatments and enhancing overall access to care. Our new partnership with Highmark will allow us to work across Penn State University and with other employers to implement new strategies that focus on prevention, health and wellness."

Under the agreement:

-- Highmark commits $5 million to support clinical research for diseases such as cancer, including investment in research infrastructure that will increase the ability of other area hospitals to participate in clinical research.

-- Highmark commits $20 million to the construction of a new free-standing Penn State Children's Hospital. When completed, the Children's Hospital will enhance the availability and quality of specialized medical care for children throughout Pennsylvania.

-- Highmark, Penn State and the Medical Center will jointly develop evidence-based health, wellness and prevention programs to help employers improve the overall health of their workers and families.

-- All three partners will work together to develop community health initiatives designed to benefit the overall health of the region.

-- Beginning Jan. 1, 2008, Highmark Inc. will be the exclusive administrator of all health plans offered to employees, dependents and retirees of Penn State and Penn State Hershey Medical Center, including employees at University Park and throughout the Penn State System as well as employees at the Medical Center. This agreement covers approximately 28,000 employees and, when including other family members, means about 60,000 people will be covered under the agreement.

"Penn State Hershey Medical Center will remain an important member of Highmark's network of hospitals," said Highmark's Melani. "Securing a long-term, affordable hospital contract for Highmark members was a top priority. This is great news for Highmark members and their dependents that count on the physicians and staff of the Medical Center for their care."

The Medical Center will continue to accept other insurances and Highmark will continue to include other providers and hospitals in its network, ensuring that patients continue to have affordable access to needed health-care services.

Highmark Inc.

As one of the leading health insurers in Pennsylvania, Highmark Inc.'s mission is to provide access to affordable, quality health care enabling individuals to live longer, healthier lives. Based in Pittsburgh, Highmark serves 4.6 million people through the company's health care benefits business. Highmark contributes millions of dollars to help keep quality health care
programs affordable and to support community-based programs that work to improve people's health. The company provides the resources to give its members a greater hand in their health. Highmark Inc. is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans. For more information, visit http://www.highmark.com online.

Penn State Milton S. Hershey Medical Center

Founded in 1963 through a gift from The Milton S. Hershey Foundation, Penn State Milton S. Hershey Medical Center is one of the leading teaching and research hospitals in the country. The 500-bed Medical Center is a provider of high-level, patient-focused medical care. Annually the Medical Center admits more than 26,000 patients, accepts more than 766,000 outpatient visits, receives nearly 48,000 patients for emergency room visits and performs more than 23,000 surgical procedures. The Medical Center also includes Penn State College of Medicine (Penn State University's medical school), Penn State Cancer Institute, and Penn State Children's Hospital -- the region's only children's hospital.

For more information, visit http://live.psu.edu/healthcare online.

Related stories:
-- Penn State Hershey Medical Center, Highmark partner to expand clinical research activity in central Pennsylvania, http://live.psu.edu/story/22768
-- Penn State, Penn State Hershey Medical Center and Highmark to work together to develop health and wellness programs, http://live.psu.edu/story/22767
-- New Penn State Children's Hospital moves closer to reality, http://live.psu.edu/story/22765

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MEDIA INQUIRIES CONTACT:
Sean Young, (717) 531-8606, e-mail: syoung@psu.edu
Bill Mahon, (814) 865-7517, e-mail: Bmahon@psu.edu
Leilyn Perri, (717) 302-4243, e-mail: Leilyn.perri@highmark.com