A 10-year partnership was announced yesterday between Penn State, Penn State Milton S. Hershey Medical Center and Highmark Inc., in which the health insurance company will be donating $20 million to help fund the Penn State Children's Hospital at Hershey and $5 million for cancer research.

Currently, the Penn State's Children's Hospital is located on the seventh floor of the Hershey Medical Center, with plans to move into the new free-standing building upon completion, Amy Buehler Stranges, Hershey Medical Center spokeswoman, said.

The specifics of construction and a projected groundbreaking date will not be set until all of the project funds have been raised, Buehler Stranges said.

In the fall semester, Harold Paz, Penn State senior vice president for health affairs, said the hospital's estimated construction cost is $65 million. About $24 million was raised in the fall, Paz said.

However, Buehler Stranges said the cost estimate may have changed, adding it is too early to project a bottom line for construction cost. She could not say how much money has been raised to date.

In September, Penn National Gaming Inc. donated $1 million to fund the hospital. Among other donations, PNC Bank and Hershey Entertainment and Resort Company have also supported funding.

Leilyn Perri, spokesman for Highmark, said this is an important project because there is a need for a children's hospital within the area.

Highmark will also become the Penn State insurance provider for employees, retirees and dependants beginning Jan. 1, Perri said.

Highmark will also be sponsoring preventive programs, which have not yet been specified, Perri said. He said the programs are studies to better inform the 60,000 Penn State insurance clients and Highmark about its clients.

The partnership contract is set to last 10 years, which allows the insurer to see what is and what is not working, he said.

Penn State spokeswoman Annemarie Mountz said the partnership will be conducting long-term research, and it will be "a good thing not only for the university, but for people in general."

Perri said this partnership is unique, because it is not common for hospitals and insurers to work together.