Risant Health Completes Acquisition of Geisinger

Kaiser Permanente’s Risant Health, the nonprofit subsidiary created to accelerate the adoption of value-based care in community health systems, completed its acquisition of the 10-hospital Pennsylvania-based Geisinger Health System. The deal was first announced in April 2023. Risant said it expects to acquire four to five additional health systems over the next four to five years.

Through this first acquisition, Washington, D.C.-based Risant brings together Kaiser Permanente’s coverage and integrated care expertise and Danville, Pennsylvania-based Geisinger’s expertise in advancing value-based care in a model that includes multiple payers and a broad network of providers, while serving some of the most vulnerable and underserved communities.

With the closing of the Risant Health and Geisinger transaction, Jaewon Ryu, MD, JD, who has served as president and CEO of Geisinger since 2019, will become Risant Health’s first CEO. As announced in March 2024, Terry Gilliland, MD, will assume the role of president and CEO of Geisinger once Ryu’s transition to Risant Health is complete.

As the Scranton Times-Tribune As noted, financial statements released last May showed that Kaiser Foundation Hospitals designated up to $5 billion “to support Risant Health’s core capabilities, technologies, tools and future investments” and will invest at least $400 million over the period. five years after closing, the financial report statements said.

Risant and Geisinger will work together to create a new value-based care platform that includes best practices, tools, technology and services to support community health systems. Risant Health’s value-based platform will support its health systems with a suite of technology, services and capabilities designed to deliver superior health outcomes and lower total cost of care, across diverse business models.

“Risant Health and Geisinger share a vision for the future of healthcare. “Through Risant Health, we will leverage our industry-leading expertise and innovation to increase the nation’s access to high-quality, evidence-based healthcare, which we know improves the quality of care and the patient and member experience.” , said the president of the board of directors of Risant Health. Greg A. Adams, in a statement. “We will also learn and benefit from Geisinger and the additional health systems that will become part of Risant Health in the future, to help them grow in new ways, become more affordable and provide value-based care to more people.”

Geisinger will maintain its name and mission, continue to accept patients covered by other health plans and continue to offer its members a broad network of care providers in addition to Geisinger, Risant said.

“Geisinger is proud to formally join Risant Health as its inaugural health system, which will accelerate our vision of making better health easier, more affordable and more accessible for the communities we serve,” Ryu said in a statement. release. “Geisinger can now expand its vision, strategy and impact to more Pennsylvanians thanks to the access to an expanded set of tools, expertise and capital that joining Risant Health provides.”

When the deal was announced last year, Cindy Lee, chief strategy officer at Chicago-based consulting firm Chartis and leader of the firm’s strategy practice, noted that “Kaiser and Geisinger have been on different care-based paths.” in values ​​for quite some time. and joining together to franchise capabilities could make a lot of sense. “Many health systems are reconsidering value-based care strategies given changing demographics, continued increases in Medicare Advantage penetration, and companies with greater resources seeking access to these lives,” she added. “Shifting to a value-based care model may require significant investments in capabilities where scale does matter, so the partnership makes sense.”

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