Highmark’s Allegheny Health Network Announces $1B Expansion

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PITTSBURGH (KDKA/AP) – Highmark Health says it’s spending $1 billion to expand its Allegheny Health Network hospital chain, including a new 160-bed hospital in Pittsburgh’s North Hills suburbs, four smaller neighborhood hospitals, and renovations to existing hospitals.

The Pittsburgh-based company is the parent of health insurer Highmark Inc. and its seven-hospital Allegheny Health Network.

Highmark Health had previously announced $315 million it’s spending on a new cancer institute at its flagship Allegheny General Hospital in Pittsburgh, and facilities in Erie.

“We are reaffirming our commitment to provide the health care our communities need for the future, not the past. And we believe these expansions, renovations and new facilities will fill critical gaps that are driving the cost of health care and leading to maybe not the best outcomes,” Allegheny Health Network President and CEO David Holmberg said.

Wednesday’s announcement includes $700 million more to fund the new hospital in Pine Township and four neighborhood hospitals it hopes to open in undetermined locations in the next two years in a joint venture with Emerus, a micro-hospital developer and management firm.

“It’s about a patient-centric strategy that provides access that’s closer to home and makes an earlier difference in people’s lives,” said Holmberg.

The rest of the money will be spent expanding its current hospitals — Allegheny General, Forbes, Jefferson and West Penn.

(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)

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