UPMC & Highmark Assignment Example | Topics and Well Written Essays - 500 words

UPMC & Highmark - Assignment Example The key reason for this battle is the attempt by Highmark Inc. to acquire a financially troubled group of hospitals known as West Penn Allegheny Health System. Highmark Inc. argues that this move will significantly lower medical costs and offer efficient health care services (Scarpino, 2013). On the other hand, UPMC, which has its own insurance firm, believes that it will not continue to bolster a company that will be a direct rival to its 19 area hospitals (Scarpino, G. 2013). Therefore, UPMC has resulted to increasing charges for patients covered by Highmark. UPMC says that Highmark’s plan to shift its 41000 inpatient from UPMC to its allegedly new chain of hospitals will result into UPMC closing its Shadyside and UPMC mercy sections and laying off over 11,000 of its employees (Baumol & Blinder, 2012). Additionally, UPMC also argues that this move will make most employees change their insurance plans that are attached to their current places of employment. This will result into the lose of patients tied to Highmark. Highmark also says that since UPMC has its own insurer, then it would be of no issue if it had its own health giver network. They believe that a little competition will be beneficial to the residents of Pittsburg since they will be provided with a range of health care providers to choose from. In response to UPMC’s sentiments that it is impossible to change insurance since it is tied to employment, Highmark says that it is also difficult for the patients to abandon the doctors that they have fully trusted and build confidence in, in pursuit for new relationships (Baumol & Blinder, 2012). I feel that UPMC has been able to get their message across most effectively because they have clearly shown that Highmark is in pursuit of its own personal interests without caring about the patients and relationships that they had built with UPMC. All the counter reactions made by UPMC were in the attempt to protect their business, as most health