Highmark, Verizon Pair Up On Pa. Exchange

Feb. 21--Highmark Inc. is preparing the first network that will allow hospitals and doctors across Pennsylvania to easily share the electronic medical records of millions of people.

Highmark, the state's largest health insurer, said Monday it partnered with Verizon Communications Inc. to provide the technology and management of its health information exchange.

"We selected Verizon as our partner because their platform provided the greatest level of flexibility," said Augusta Kairys, vice president of provider technical and strategic partnerships.

Flexibility is important in a health information exchange because it must be able to communicate with all the various electronic medical record systems used by physician practices and hospitals, Kairys said.

The insurer, which declined to provide a cost for the system, said it signed up five organizations to the exchange. The first, West Penn Allegheny Health System, will be connected to the exchange during the next month. Highmark is trying to acquire five-hospital West Penn Allegheny in a $475 million deal that is awaiting approval from state regulators.

Butler Health System, Jefferson Regional Medical Center, MedExpress Urgent Care, Vantage Health Network in Erie, The Washington Hospital and other unnamed organizations connect after West Penn Allegheny, officials said.

Butler Health, Jefferson Regional and Washington Hospital also are partners with UPMC and a regional health information exchange it announced in August. That nine-organization, a $4 million effort, known as ClinicalConnect, is in a testing phase and on track to go live with a connection between UPMC and Heritage Valley Health System this spring, said Chris Carmody, UPMC vice president of information technology outreach services.

"Everything is moving along very well," said Carmody, who noted that UPMC also is talking with health care organizations in eastern Ohio and southwest New York about joining ClinicalConnect.

So far there are no plans to link UPMC's exchange with rival Highmark's, said Mike Fiaschetti, Highmark senior vice president of provider services and strategy.

Highmark and UPMC, the region's dominant hospital network, are locked in a contract stalemate over the insurer's decision to buy West Penn Allegheny, which UPMC says will make Highmark a direct competitor.

Highmark declined to say what it will charge organizations to join its exchange, but Fiaschetti said the insurer will subsidize the cost initially.

"We're working on a business model that will be ultimately self sustaining," he said.

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