Kaiser Permanente on Wednesday announced it is acquiring Geisinger and folding it into a new entity, Risant Health, in a deal that could have wider implications for how care is delivered in senior living communities.
With the deal, the terms of which were not disclosed Wednesday, Danville, Pennsylvania-based Geisinger will keep its name and mission while becoming the first health system to join the new non-profit group.
Risant will be based out of Washington, D.C., and operate independently from Kaiser, and health systems that join it will continue on as regional or community-based organizations. Dr. Jaewon Ryu, who is CEO of Geisinger, is slated to lead Risant when the deal closes. Geisinger also will help shape the organization’s strategy and operational model.
In acquiring Geisinger, Kaiser Permanente is gaining new inroads in the senior living industry. Geisinger had previously collaborated with senior living operator Clover Management and REIT Welltower (NYSE: WELL) through its senior-focused 65 Forward primary care clinics specifically geared toward providing primary care and wraparound services to support seniors’ long-term wellbeing.
Ryu has previously expressed a belief that patients have the best outcomes when their care is “as coordinated and integrated as possible.”
“It doesn’t mean it has to all be part of the same organization, but I think that working together on the collaboration and integration is very important,” Ryu said in a 2021 Vision Series interview with Senior Housing News parent company Aging Media. “I think like-minded organizations that are rooted in that as their north star — what is the best for the patient? — they’re going to eventually align because they see the world similarly.
Risant’s goal is to “expand and accelerate the adoption of value-based care in diverse, multi-payer, multi-provider, community-based health system environments,” Geisinger noted in a press release.
“Risant Health will grow its impact by acquiring and connecting a portfolio of likeminded, nonprofit, value-oriented community-based health systems anchored in their respective communities,” the release reads.
A representative for Geisinger was not immediately available to comment on the transaction Wednesday.
By linking up with Risant Health, health systems would get resources and support through the group’s value-based platform, including model design, pharmacy services, consumer digital engagement, health plan product development and purchasing.
Kaiser Permanente reported $94.5 billion in revenue last year, and maintains a network of nearly 40 hospitals and 12.6 million insurance plan members, the Wall Street Journal reported. Geisinger reported about $7 billion in revenue last year and 600,000 health plan members, according to the WSJ.
“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,” Ryu said. “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.”
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