Kaiser Permanente announced on April 26 that it was acquiring Geisinger Health, which will join Risant Health, a new nonprofit organization created by the Kaiser Foundation Hospitals.
Geisinger Health comprises 10 hospitals, as well as a health plan with more than half a million members. The Danville, Pennsylvania-based health system has 25,000 employees and more than 1,700 physicians.
Kaiser Permanente is among the country’s largest nonprofit systems with 39 hospitals. Its operations span eight states coast to coast with roughly 13 million members who receive care through its integrated model. The organization reported $95.4 billion in operating revenue across 2022, as well as a $1.3 billion operating loss and a nearly $4.5 billion net loss.
Geisinger Health will be involved in developing Risant Health’s strategy and operational model. The combined health system is expected to result in more than $100 billion in revenue.
This move was described as a first step towards a new multisystem value-based care organization. Kaiser Permanente is expected to provide approximately $5 billion in funding for Risant Health. In addition, Risant Health plans to acquire four or five more health systems and total revenue of $30 billion to $35 billion over the next five years.
According to data captured in the LevinPro HC database, this transaction is the 18th Hospital acquisition of 2023. This also marks Kaiser’s first transaction of 2023 and Geisinger Health’s second, where it previously purchased the ENT practice of Joseph Puzzi, M.D.
