Kaiser Permanente buys Geisinger, launches new value-based care initiative

Steven Loeb · April 26, 2023 · Short URL: https://vator.tv/n/56aa

Geisinger will be the first heath system to join the newly formed Risant Health

The U.S. healthcare industry is rapidly adopting value-based care models, a form of reimbursement that ties payments for care delivery to the quality of care provided.

With that in mind, Kaiser Foundation Hospitals announced on Wednesday the formation of a new value-based care organization called Risant Health, as well as the acquisition of Geisinger Health, which will become the first health system to join the newly launched venture.

Founded 100 years ago, the Danville, Pennsylvania-based Geisinger's system includes 10 hospital campuses, a health plan with more than half a million members, a research institute and the Geisinger College of Health Sciences, which includes schools of medicine, nursing and graduate education. It has more than 25,000 employees and over 1,700 employed physicians. Once the deal closes, Jaewon Ryu, MD, JD, who currently serves as president and CEO of Geisinger Health, will transition to a new role as CEO of Risant Health.

"Geisinger is excited for what joining Risant Health will mean both for our system and for the communities we serve in Pennsylvania," Ryu said in a statement. 

"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. 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."

The mission behind Risant Health is to expand and accelerate the adoption of value-based care, and Geisinger will participate in developing the organization's strategy and operational model going forward

While Geisinger is the first system to join Risant Health, the company is already looking to incorporate more health systems, which it says will help grow its impact by "connecting a portfolio of likeminded, nonprofit, value-oriented community-based health systems anchored in their respective communities." It did not specify any other potential health systems that could become part of Risant Health, however.

Those that do will continue to operate as regional or community-based health systems; even after the acquisition closes, Geisinger will maintain its name and mission, and will continue to work with other health plans, employed physicians, and independent providers. What will be different is that it will be have access to Risant's expertise, resources, and support, including its value-based care practices and capabilities in areas such as care model design, pharmacy, consumer digital engagement, health plan product development, and purchasing. 

Founded in 1945, Kaiser Permanente currently serves around 12.6 million members in eight states and the District of Columbia.

"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," Greg. A. Adams, chair and CEO, Kaiser Permanente, said in a statement. 

"We know fully replicating KP's closed integrated care and coverage model is not viable in all communities. By helping other health systems achieve our value-based quality outcomes and savings in multi-payer, multi-provider environments, we believe Risant Health can deliver a transformative new solution to America's systemic health care problems. And, given its history in this space, we can think of no better organization than Geisinger to be the inaugural health system to join Risant Health." 

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