Geisinger Health System and Highmark Health on Tuesday finalized their joint venture to improve services in north central Pennsylvania.
The new not-for-profit organization will create new healthcare facilities in four counties as well as work with independent physicians and implement value-based care models. All in all, the organizations say they will spend more than $100 million on the joint venture.
"By working together, sharing current resources and investing in new resources, I am confident that this new organization will achieve the goals of improved care efficiency and effectiveness and reduced costs," said Deborah Rice-Johnson, president of Highmark Health Plan.
One of the new facilities, a healthplex in Muncy Township, will include a full-service emergency department, oncology, surgery and primary care services. Dr. Jaewon Ryu, interim president and CEO of Geisinger, noted the healthplex will also use telemedicine to help local residents access specialists across the Geisinger system.
"This not only improves quality, access and convenience, but has the added benefit of reducing healthcare costs," Ryu said.
Geisinger and Highmark first announced the joint venture in May 2017 when they signed a letter of intent.
The partnership will impact about 65,000 Highmark members that live in north central Pennsylvania, including Medicare Advantage members. Geisinger also has several physician practice sites in that region.