Kaiser Permanente acquiring Geisinger to launch Risant Health

Oakland, Calif.-based Kaiser Permanente has agreed to acquire Geisinger Health in a deal that will make the Danville, Pa.-based health system the first to join Risant Health, a new nonprofit organization created by the Kaiser Foundation Hospitals.

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Risant Health aims to expand and accelerate the adoption of value-based care in “diverse, multi-payer, multi-provider, community-based health system environments,” according to an April 26 news release from Kaiser Permanente and Geisinger. 

The deal is subject to regulatory approval. The transaction is not structured as a traditional purchase, but Kaiser Permanente is expected to provide about $5 billion in funding for Risant Health, The Wall Street Journal reported April 26. 

Risant Health plans to acquire four or five more health systems and get to a total revenue of $30 billion to $35 billion over the next five years, officials told the Journal. 

Health systems that become a part of Risant Health will continue to operate as regional or community-based health systems while gaining support through Risant’s value-based platform, according to the release. 

Geisinger will maintain its name and mission, according to the release. As the first system to become part of Risant Health, it will be involved in developing the organization’s strategy and operational model. 

Geisinger President and CEO Jaewon Ryu, MD, will transition to the role of Risant Health CEO once the transaction closes, according to the release. 

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