UPHS and IBX Renew Partnership for Fourth Term, Continuing Their Role in Philadelphia's Healthcare System

The University of Pennsylvania Health System (UPHS) and Independence Blue Cross (IBX) have renewed their contract for a fourth consecutive term, continuing their role in Philadelphia’s healthcare system.

Effective July 1, 2025, this agreement ensures that nearly 400,000 patients covered by IBX each year will keep receiving quality care from Penn Medicine providers. The partnership focuses on improving health outcomes, patient experiences, and controlling costs, aiming to set new standards for innovative care in healthcare, according to a release.

Kevin B. Mahoney, CEO of UPHS, talked about how their collaboration has helped create new healthcare practices, such as reducing preventable readmissions.

"At a time when both health systems and insurers are under financial pressure, we are energized to continue our solid partnership caring for those who depend on both our organizations each day," Mahoney said. "Over the years, we’ve held one another accountable, transformed the way we provide care, and most importantly, we’ve worked together to make the communities we serve healthier."

Since the partnership began in 2012, it’s become a model for value-based care, which focuses on improving healthcare while controlling costs.

Gregory E. Deavens, president and CEO of IBX, emphasized the impact of the collaboration, explaining that it's shown how providers and insurers can work together to improve care.

"This early agreement on rates reassures IBX members that our collaboration with Penn Medicine is enduring, providing continued access to exceptional medical care when they need it most," said Deavens.

Throughout their partnership, UPHS and IBX have worked to reduce health disparities through programs like Accelerate Health Equity (AHE) and the Regional Coalition to Eliminate Race-Based Medicine. The two organizations have also focused on improving patient access to care by streamlining processes, such as a pilot program eliminating prior authorization for certain imaging studies.

Additionally, Penn Medicine has participated in IBX’s Clinical Care Innovation Program, which helps improve health outcomes and reduce costs. Since 2021, IBX has awarded Penn Medicine nine grants, enabling both organizations to expand their value-based care programs.