Jefferson Regional, Highmark pursue strategic partnership
Jefferson Regional Medical Center and Highmark are pursuing a strategic partnership that they say will enable both organizations to continue to provide patients with quality health care at affordable costs.
"On June 11, the board of directors voted unanimously to pursue a strategic partnership with Highmark," John J. Dempster, president and CEO of the hospital, said Tuesday.
"This is an important milestone for Jefferson Regional Medical Center," he said. "This new relationship is a positive step for our organization, one that will enhance the work of our medical staff and our employees and the lives of our patients."
He said the medical center is "strong, both financially and operationally," and the strategic partnership will "position us from solid to very, very strong to meet the needs of the community now and in the future."
Highmark board chairman Dr. J. Robert Baum said the partnership should be finalized by the end of this year. "This is one of the finest regional hospitals. This is not a rescue but part of a growth strategy. Jefferson Regional wants to grow and Highmark wants to grow. We see Jefferson Hospital as being the southern hub of Highmark providers. We are committed to making significant improvements and expansions at the hospital."
Stressing the action is "not an acquisition or merger, it is an affiliation," Baum said Highmark will have 75 percent of the votes on the hospital's board and Jefferson will have 75 percent of the votes for how foundation money is spent.
Dempster said the board's unanimous vote shows its support of that agreement. "The biggest issue was the trust factor and we have that. None of us owns these institutions - they belong to the community. We are absolutely OK with this structure."
As part of Highmark's integrated delivery system in its southern service region, the company plans a new state-of-the-art emergency department at the hospital, expanded services at the Bethel Park Campus, expanded clinical services including neurology and gynecology, and $75 million for Jefferson's foundation for improved community health and wellness care.
Baum said both groups have been working for months toward Monday's decision to pursue the strategic partnership. "They have been focused and thoughtful in how this was brought together," he said of JRMC officials. "This is a great day for the people of the South Hills communities who will have an even stronger Jefferson Hospital."
JRMC's history dates to 1973 with the consolidation of St. Joseph's and Homestead hospitals to form South Hills Health System. The name was changed to Jefferson Regional Medical Center in 2002 and serves South Hills communities including Homestead, Jefferson Hills, Pleasant Hills and West Mifflin.
Baum said UPMC patients will have access to services at Jefferson Regional after the partnership is finalized.
Referring to Highmark's relationship with West Penn Allegheny, Baum said the partnership with JRMC is independent of that. "They will remain separate on our balance sheets and West Penn and Jefferson Regional will appear as sister facilities in our organizational structure."
Baum said his organization is partnering with an "exemplary health care system," citing its HealthGrades listing as one of the best hospitals in America and its numerous awards and recognition for its cardiac services.
Dr. Richard Collins, executive vice president and chief medical officer at JRMC, said, "I am convinced we will have an even more vibrant health care facility closer to home. This is exciting because it will further improve our services."
