Kaiser Permanente acquiring Geisinger, launching new nonprofit
Kaiser Permanente is acquiring Geisinger Health in a deal that makes Geisinger the first health system to join Risant Health, a new nonprofit organization created by Kaiser Foundation Hospitals.
Risant Health aims to expand and accelerate the adoption of value-based care in health systems. Geisinger Health, headquartered in Daville, Pennsylvania, is a 10-hospital health system and also has a health plan with more than half a million members, a research institute and the Geisinger College of Health Sciences. The organization includes more than 25,000 employees and 1,700 employed physicians.
According to Kaiser, Risant will continue growing through acquisitions and connecting a portfolio of like-minded health systems. Health systems that become part of Risant Health will continue to operate as regional or community-based health systems and gain the expertise of Risan’t value-based platform. Risant Health will operate “separately and distinctly” from Kaiser Permanente’s integrated care and coverage model.
Under terms of the deal, Geisinger will retain its name and mission, and work with other health plans, employed physicians and independent providers. It will leverage Risant Health’s value-based platform and participate in developing the organization’s strategy and operational model.
“Through Risant Health, we will make our value-based care expertise, technology and services available to community-based health systems, like Geisinger, to strengthen their ability to provide value-based care models with a focus on high-quality and equitable health outcomes,” Greg A. Adams, chair and CEO of Kaiser Permanente, said in a statement. “We know fully replicating KP’s closed integrated care and coverage model is not viable in all communities. By helping other health systems achieve our value-based quality outcomes and savings in multi-payer, multi-provider environments, we believe Risant Health can deliver a transformative new solution to America’s systemic health care problems. And, given its history in this space, we can think of no better organization than Geisinger to be the inaugural health system to join Risant Health.”
As part of the announcement, Kaiser also said Jaewon Ryu, MD, JD, has been selected to serve as CEO of Risant Health. He will transition from his current role as president and CEO at Geisinger Health as the transaction between Risant Health and Geisinger closes.
“Geisinger is excited for what joining Risant Health will mean both for our system and for the communities we serve in Pennsylvania,” Ryu said. “Geisinger will be able to accelerate our vision and continue to invest in new and existing capabilities and facilities, while charting a path for the future of American healthcare, through Risant Health. Kaiser Permanente and Geisinger share a vision for the future of healthcare, and as the Risant Health name indicates, we believe by working together we will reach new heights in healthcare and raise the bar for better health for all communities.”
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."