Kaiser Permanente Acquires Geisinger

The U.S. healthcare market continues its trend toward vertical integration with the launch of Risant Health, a new value-based care, integrated health organization recently announced by Kaiser Permanente and Geisinger Health. Geisinger, a Pennsylvania-based, ten-hospital system, will be the first to join the organization via acquisition (pending regulatory approval).

Designed to expand and accelerate the adoption of value-based care in multi-payer, multi-provider health system environments, Risant Health intends to grow by acquiring and connecting community health systems. Member systems will continue to operate as regional or community-based while gaining expertise, resources, and support through the value-based platform. 

While the terms of the deal with Geisinger were not disclosed at the time of the announcement, Kaiser leadership told The New York Times that they'll be investing $5 billion into Risant over the next five years, with plans to add five or six more systems to the platform. The nonprofit organization will "operate separately and distinctly from Kaiser Permanente's core integrated care and coverage model" according to the announcement.

Workweek writer Blake Madden noted on Twitter that this is a first step toward integrated care delivery for the entire U.S. healthcare system. In a recent episode of the Business of Primary Care Podcast, we talked with Blake about this trend toward vertical integration. You can listen to the episode here.