The Geisinger Health System and Highmark have reached agreement on a new four-year contract, effective Jan. 1, 2011. The current agreement had been set to expire on Dec. 31, 2010.
Under the new contract, Geisinger Medical Center and Geisinger Clinic physicians will remain network providers for Highmark's indemnity and managed care members and will continue to participate in networks currently under contract in 2010. Terms of the agreement were not disclosed when the companies made their announcement last Friday.
"We're very pleased that a new contract has been reached that is fair and equitable to both parties," said Mike Fiaschetti, Highmark's senior vice president of provider services and strategy. "Importantly, this agreement will enable us to maintain our long-standing relationship with Geisinger Health System and provide our members with continued access to Geisinger's excellent medical facilities and physicians."
Geisinger Executive Vice President and Chief Medical Officer Albert Bothe, MD, called the agreement good news. "We are pleased that all of our patients with Highmark coverage would be able to continue to benefit from the quality and value Geisinger delivers," he said.
Officials from both organizations said they would immediately begin to notify their patients, members, group customers, healthcare providers and producers of the arrangement.
Highmark is based in Pittsburgh and claims to serve 4.7 million people through the company's healthcare benefits business.
Based in Danville, Pa., Geisinger is an integrated health services organization widely recognized for its innovative use of electronic health records and the development and implementation of innovative care models including advanced medical home and its ProvenCare "warranty" program. Geisinger officials say the system serves more than 2.6 million residents throughout 42 counties in central and northeastern Pennsylvania.