State regulators OK Kaiser’s $2B takeover of Group Health; deal awaits commissioner’s decision

Washington state insurance regulators endorsed Kaiser Permanente’s proposed acquisition of Seattle-based Group Health Cooperative in a hearing before Insurance Commissioner Mike Kreidler Jan. 4, The Seattle Times reports.

Advertisement

The Office of the Insurance Commissioner’s chief reviewer Ronald Pastuch said investigators determined the proposed deal would not hamper competition in Washington state nor negatively impact public interests.

Oakland, Calif.-based Kaiser Permanente disclosed its intentions to buy Group Health in December 2015. Under terms of the deal, Kaiser Permanente will pay $1.8 billion to establish a nonprofit Group Health Community Foundation and spend another $1 billion over 10 years to expand Group Health facilities, staff, technology and research.

Group Health is comprised of about 600,000 members in Washington and northern Idaho, and is valued at $3.5 billion.

Stakeholders expect Dr. Kreidler to make a decision by the end of the month.

More articles on transaction and valuation: 

Aviacode aims to expand coding services with acquisition of Revant Solutions: 4 things to know
Fla. Keys hospital board requests divestiture from CHS
2017 brings KU Hospital, Hays Medical Center partnership into effect

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Register to Attend Webinar

How University Health turns ED signals into hospital-wide flow

Thursday, August 13
1:00 PM - 2:00 PM CDT

Presenters: Bill Phillips, University HealthAshley Schutz, MHA, MLS (ASCP), University HealthBill Griffith

Advertisement

Next Up in Transactions & Valuation Issues

Advertisement

Comments are closed.