West Penn Allegheny Health System said it broke off an agreement to be acquired by the insurer Highmark.
The Pittsburgh health system said Highmark violated terms of the acquisition deal and sought to restructure West Penn Allegheny through bankruptcy, according to a news release. Highmark announced plans to acquire the struggling health system in June 2011 for $475 million.
West Penn Allegheny said Highmark breached its agreement by refusing to close on the deal.
Highmark, in a statement, “categorically denies” the insurer violated the deal's terms.
The health system said it would explore options for its future.