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<p>Highmark Health added $158 million to the regional economy in 2017, and expects to grow, CEO David Holmberg said in a phone interview previewing an economic impact study done for the health care giant by by Tripp Umbach.</p><p>&#8220;That&#8217;s direct and indirect economic impact,&#8221; Holmberg said of the number for the 13 counties that previously made up the territory of Blue Cross of NEPA, which merged into Highmark Blue Cross Blue Shield in 2015.</p><p>Holmberg said Highmark is creating 1,774 jobs in the region, directly and indirectly. The study defines direct impact as &#8220;in-area spending related to items such as capital improvements, goods and services as well as operational costs.&#8221; Indirect impact was derived using a computer program and public data to derive the amount resulting from all secondary spending such as employee wages.&#8221;</p><p>The jobs numbers were a hot topic early in the merger because the deal included a broad promise to protect jobs of those employed by Blue Cross of NEPA for 18 months. Within a year, rumors about layoffs had started circulating. At the time, Holmberg said the number of employees had dropped slightly but predicted it would rise as the company brought more services to the a region.</p><p>In March of last year, Highmark Spokesman Anthony Matrisciano said the workforce of 795 in the region at the time of the merger had dipped to about 700 before rebounding, and that there are about 800 employees in the region now.</p><p>Holmberg didn&#8217;t offers specific numbers for regional employment, but said he believes it has increased. &#8220;We actually think our total employment there is up, frankly,&#8221; he said. &#8220;We moved some work from United Concordia (Highmark&#8217;s dental service) to the Wilkes-Barre/Scranton area, and made a number of other changes. A lot of folks up there are doing work that goes across all three states.</p><p>While Highmark operates in some capacity in all 50 states, its core business is focused on Pennsylvania, West Virginia and Delaware.</p><p>During Monday&#8217;s interview, Holmberg touted the size of Highmark&#8217;s impact statewide calculated in the report, which showed a direct impact of $5.4 billion and indirect impact of $6.9 billion, for a total of $12.3 billion.</p><p>&#8220;To put that in context, that&#8217;s more than every pro sports franchise in Pennsylvania, and more than the entire impact of the airline industry,&#8221; Holmberg said. He also cited about 83,271 direct and indirect jobs statewide.</p><p>Nationally, the study calculated Highmark Health&#8217;s total economic impact reached $18.7 billion in 2017. Holmberg said that is nearly $17 billion more than the impact calculated in 2006, the last time the company commissioned such a study.</p><p>&#8220;We are the second largest Integrated Delivery and Finance System in the country,&#8221; Holmberg said, referring to an industry term for insurer-driven integration of medical services. &#8220;All of our businesses are doing well. We anticipate additional growth in terms of jobs as well as economic impact.&#8221;</p><p>Citing growing partnerships like one with Penn State Health and other organizations, Holmberg said Highmark expects to create 800 permanent jobs as it builds new facilities.</p><p>&#8220;We are well suited to deliver on the promises we&#8217;ve made to the communities,&#8221; he said, also noting millions spent to support charitable work. &#8220;We are doing very innovative things.&#8221;</p><style>
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<div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2019/03/web1_Highmark_CEO_David_Holmberg_600-2.jpg">
<div class="neCaption"></div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/03/web1_Highmark_CEO_David_Holmberg_600-2.jpg</photo0><caption0></caption0><photoCredit0></photoCredit0></div><div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2019/03/web1_TTL080515Highmark-2.jpg">
<div class="neCaption">Ted Morris and Mike Nally of MAC Sign Co. in Scranton work to put up a new Highmark Blue Cross and Blue Shield sign on one of the company&#8217;s buildings on North Main St in Wilkes-Barre in 2015 following Blue Cross of NEPA&#8217;s merger into the Highmark system. </div></div><div class="metaInfo"><photo1>https://www.timesleader.com/wp-content/uploads/2019/03/web1_TTL080515Highmark-2.jpg</photo1><caption1>Ted Morris and Mike Nally of MAC Sign Co. in Scranton work to put up a new Highmark Blue Cross and Blue Shield sign on one of the company&#8217;s buildings on North Main St in Wilkes-Barre in 2015 following Blue Cross of NEPA&#8217;s merger into the Highmark system. </caption1><photoCredit1>Times Leader file photo </photoCredit1></div></div>
<div class="metaInfo"><bylineMeta><p>By Mark Guydish</p><p>mguydish@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish</p></shirttailMeta></div>

Highmark CEO predicts local growth as report details economic impact