Kaiser Permanente to compete in Pa. with Geisinger acquisition
Cris Collingwood//April 3, 2024
nonprofit created by Oakland, California-based Kaiser Permanente completed its acquisition of Geisinger as its first health system dedicated to increasing access to value-based care.
Together, Risant Health said the organizations will create a new value-based care platform to support community-based health systems with Danville-based Geisinger’s current president taking the helm of Risant Health.
Risant Health said its goal is to expand value-based care in diverse, multipayer, multiprovider, community-based health systems.
The nonprofit created by Kaiser Foundation Hospitals in 2023, said the acquisition brings together Kaiser Permanente’s ability to coordinated care with Geisinger’s experience in working with insurers and other health networks to improve the quality of care across the counties it works in.
With the close of the Risant Health and Geisinger transaction, Dr. Jaewon Ryu, who has served as Geisinger’s president and CEO since 2019, will become the first CEO of Risant Health.
As announced in March 2024, Dr. Terry Gilliland will assume the role of president and CEO of Geisinger once Ryu’s transition to Risant Health is complete.
Risant Health and Geisinger share a vision for the future of health care. Through Risant Health, we will leverage our industry-leading expertise and innovation to increase the country’s access to high-quality and evidence-based health care, which we know improves care quality and the patient and member experience,” said Risant Health’s Board Chair Greg A. Adams. “We will also learn and benefit from Geisinger and the additional health systems that become part of Risant
Health in the future, to help them grow in new ways, be more affordable and bring value-based care to more people.”
As its inaugural health system, Geisinger will help shape Risant Health’s strategy, platform and operational model, Risant Health said. Geisinger said it will maintain its name and continue accepting patients covered by other health plans.
“Geisinger is proud to formally join Risant Health as its inaugural health system, which will accelerate our vision to make better health easier, more affordable and more accessible for the communities we serve,” said Ryu. “Geisinger now can extend its vision, strategy and impact to more Pennsylvanians because of the access to an expanded set of tools, expertise and capital that joining Risant Health provides.”
As a part of Risant Health, Geisinger will build on its 109-year mission to care for rural and urban communities across Pennsylvania. Geisinger said it will have access to capital, technology and resources to fuel improvements in facilities, drive innovation and investment in patient care, and continue the expansion of Geisinger Health Plan.
Risant Health said it expects to acquire four to five additional leading community-based health systems over the next four to five years.
Risant Health’s value-based platform will support its health systems with a set of technology, services and capabilities designed to deliver superior health outcomes and a lower total cost of care, in diverse business models, it said.
Risant Health’s acquisition of Geisinger Health was reviewed and approved by the appropriate federal and state agencies and the transaction closed on March 31.
