Two of the largest non-profit healthcare organizations in the U.S. are attempting to expand into a national organization—pending federal approval.
- Kaiser Permanente is an Oakland, California, healthcare company that provides insurance and owns multiple regional hospitals and medical networks.
- Geisinger Health is a Pennsylvania-based research institute, teaching school, and care facility with 10 hospital campuses, working with the Geisinger College of Health Sciences
- In a Wednesday press release, Kaiser announced that it would be acquiring Geisinger and transforming it into Washington, D.C.-based Risant Health.
- This new entity will acquire additional hospital systems and form a non-profit value-based organization and spread Kaiser’s model into new communities and markets.
- The acquisition is awaiting regulatory approval before it may move forward but could happen as soon as early 2024.
Why It’s News
The acquisition marks a bold consolidation and expansion move for Kaiser Permanente, which has built its name in California through its value-based care model. It is one of the largest non-profit health systems in the U.S.
Value-based care has become a popular concept in the health business, which ties reimbursement for care to the quality of treatment. Risant Health will mark a notably large national push to expand and cultivate that model of healthcare—hand-in-hand with Geisinger.
However, Kaiser may face an uphill battle. The Federal Trade Commission may halt the acquisition before it can be completed. The Biden administration has taken a stance against healthcare consolidation and oversaw the halting of the recently proposed Advocate Aurora Health-Atrium Health merger in 2022.
“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,” says Kaiser CEO Greg. A. Adams.