Highmark is investing $1 billion to transform itself from an insurer to a provider.  Half of the investment will support West Penn Allegheny Health system.  The remaining $500 million will be used to develop network of medical malls, ambulatory care centers, and hospitals.

This strategic move will greatly impact UPMC (the dominant provider in the area).  Hospitals and health systems in similar markets should take note of this move by an insurer and conduct a scenario planning session.