Highmark reaches new provider agreement with Erie's largest OB-GYN practice

Highmark Inc. has reached a new provider agreement with Erie's largest obstetrics-gynecology practice, preventing hundreds of Erie-area women from having to switch physicians.

OB/GYN Associates of Erie had sent a letter in March to its patients, stating that it would stop accepting Highmark health insurance May 15 unless a new agreement was reached. Provider agreements determine how much a medical office or hospital receives from a health insurer for covered services, such as office visits and procedures.

The two sides reached an agreement in mid-April.

"We value the services OB/GYN Associates of Erie offers for our members in northwestern PA and have been negotiating over the last several weeks to offer fair and reasonable increases in our reimbursement rates to keep those services available to our members," Highmark officials said in an email.

Highmark Inc. has reached a new provider agreement with OB/GYN Associates of Erie, weeks after the medical practice notified patients that it would stop accepting Highmark health insurance May 15.
Highmark Inc. has reached a new provider agreement with OB/GYN Associates of Erie, weeks after the medical practice notified patients that it would stop accepting Highmark health insurance May 15.

"We are pleased to say that we were able to reach an agreement to keep OB/GYN Associates of Erie in our networks without any member disruption."

Highmark declined to discuss any details of the agreement. A voice message left with OB/GYN Associates of Erie staff was not returned.

OB/GYN Associates of Erie is an independent medical practice with four offices: two in Erie, one in Titusville and one in Ashtabula, Ohio. Its physicians deliver babies and perform gynecological procedures at both UPMC Hamot and Saint Vincent Hospital.

Erie medical office has history of tough negotiations with hospitals

The practice has a history of newsworthy negotiations with local hospitals and health insurers.

  • In 2011, its physicians switched from working primarily at Saint Vincent to working primarily at UPMC Hamot. One of its physicians, Dr. Michael Scutella, was named medical director of the then-Hamot Women's Hospital, now known as UPMC Magee-Women's in Erie.

  • In early 2014, the practice merged with Bayside OB/GYN & Infertility and its physicians began delivering babies and performing procedures at both Saint Vincent and UPMC Hamot. The merger was done at a time when it appeared UPMC would no longer accept Highmark insurance.

Contact David Bruce at dbruce@timesnews.com. Follow him on X @ETNBruce.

This article originally appeared on Erie Times-News: Highmark reaches provider agreement with OB/GYN Associates of Erie PA

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