Highmark Inc. expects to close an acquisition of St. Vincent Health System in Erie on July 1, since the Erie County Orphan’s Court approved the deal on Friday.
The Erie County Orphan’s Court on Friday approved the affiliation of Saint Vincent Health System with Highmark Inc. and the Allegheny Health Network, Highmark’s fledgling health care provider network.
The acquisition includes a $20 million cash investment for Saint Vincent and an additional $5 million for capital projects for the system. In addition, Highmark will invest more than $40 million over the next three years to improve existing facilities at Saint Vincent and the Sisters of St. Joseph, who operated the system for years, will receive a one-time payment of $10 million.
Saint Vincent and West Penn Allegheny Health System are part of Highmark’s Allegheny Health Network, a new provider that also includes Jefferson Regional Medical Center, Premier Medical Associates and other medical practices. Allegheny Health Network will compete against UPMC, which controls the health care market in Allegheny and surrounding counties.