University Times

The University of Pittsburgh Medical Center (UPMC) and Blue Cross of Western Pennsylvania/Pennsylvania Blue Shield have signed an agreement giving UPMC a 20 percent investment in the SecurityBlue Medicare HMO.

The agreement is one of a number of collaborations between the two. UPMC provides specialty care services in Blue Cross Primary Care Centers and UPMC administrators are discussing primary care initiatives in Beaver County.

Also, negotiations are underway for the development of a Blue Cross insurance package for UPMC employees and dependents, as well as those of other hospitals and physician groups in the Tri-State Health System.

The Medicare population of UPMC affiliates range from 50 percent to 75 percent. UPMC President Jeffrey Romoff noted that UPMC has a long tradition of treating the elderly and has conducted a great deal of research in geriatric medicine, while Blue Cross has been the insurer of choice for senior citizens in western Pennsylvania.

"The logical combination of this area's largest provider of geriatric services with the area's dominant insurer will create a synergy that will ensure that the special needs of this population is not overlooked under the pressure to reduce costs," Romoff said.