Highmark, also based in Pittsburgh, announced plans to acquire West Penn in June. As part of the deal, Highmark said it would provide the five-hospital system with a $50 million grant and $75 million education grant, and would invest an additional $350 million over the next four years.
At the time of the announcement at the end of June, Highmark and West Penn Allegheny said they expected to submit a regulatory filing to the Pennsylvania Insurance Department within two months. It has not yet been filed.
UMB Financial Corp. said in a public statement dated Oct. 20 that requests from the master trustee for information about the deal have been denied by West Penn Allegheny and there have been no public notices about when the agreement will be signed or why the process has been extended.
“Consequently, while the Master Trustee believes that discussions are on-going, there is no assurance that such is the case,” the document said.
In addition, West Penn Allegheny had requested $9.7 million in September from the bond trustee for expenses incurred during the previous nine months. UMB said its subsequent requests for information about the requisition have not been supplied.
West Penn Allegheny is gathering details about the reimbursement request made by UMB in September, according to the spokesman.