Kaiser Permanente to Acquire Geisinger, Expand Value-Based Care
Kaiser Permanente has agreed to acquire PA-based Geisinger Health in a bid to expand value-based care under Risant Health, a new nonprofit group.
California-based integrated health system Kaiser Permanente recently announced that it has agreed to acquire Geisinger Health, a 10-hospital system on the East Coast, in an effort to develop a new value-based care company.
Geisinger will be the first health system to join Risant Health, a nonprofit organization created by Kaiser Foundation Hospitals to expand and accelerate the adoption of value-based care by acquiring health systems. The health systems will continue to operate as regional- or community-based health systems with the support of Risant’s value-based care platform, according to the announcement.
"Our mission calls on us to find new ways to promote high-quality, affordable, and evidence-based care with equitable and improved health outcomes. 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," said Greg. A. Adams, chair and CEO of Kaiser Permanente.
Adams added that Kaiser Permanente’s closed integrated care model is not viable in all environments, which is where Risant Health can step in to support community-based value-based care models.
" 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,” Adams said.
Geisinger with continue to use its name and mission, as well as work with other health plans, employed physicians, and independent providers. Under Risant Health, the health system leverage the company’s value-based care platform to implement best practices and capabilities around care model design, pharmacy, consumer digital engagement, health plan product development, and purchasing.
"Geisinger is excited for what joining Risant Health will mean both for our system and for the communities we serve in Pennsylvania," Jaewon Ryu, MD, JD, president and CEO of Geisinger Health, said in the announcement.
"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 health care, through Risant Health,” added Rya, who will serve as CEO of Risant Health. “Kaiser Permanente and Geisinger share a vision for the future of health care, and as the Risant Health name indicates, we believe by working together we will reach new heights in health care and raise the bar for better health for all communities."
Risant Health will be headquartered in Washington DC. The acquisition between Risant Health and Geisinger will also have to undergo federal and state review.
