KP, Geisinger Health to Merge, Create Value-based Affiliate

Danville, PA-based Geisinger will be the first hospital to join Risant Health.

Megasystem Kaiser Permanente and Pennyslvania's Geisinger Health announced Wednesday that they plan to merge, with Geisinger to become the first hospital under KP's newly created but separate, value-based care affiliate, Risant Health.

Financial terms were not disclosed for the deal, which will have to clear daunting state and federal regulatory hurdles.

In a media release, the two systems describe Risant as a "nonprofit organization, created by Kaiser Foundation Hospitals, to expand and accelerate the adoption of value-based care in diverse, multi-payer, multi-provider, community-based health system environments."

"Risant Health's vision is to improve the health of millions of people by increasing access to value-based care and coverage and raising the bar for value-based approaches that prioritize patient quality outcomes," the health systems say. "In addition to Geisinger, Risant Health will grow its impact by acquiring and connecting a portfolio of like-minded, nonprofit, value-oriented community-based health systems anchored in their respective communities."

Geisinger will keep its name and mission, and will continue to work with other health plans, employed physicians, and independent providers. At the same time, Geisinger will tap Risant's value-based platform to maximize practices in care model design, pharmacy, consumer digital engagement, health plan product development, and purchasing.

As the first health system in Risant, Geisinger will help develop the system's strategy and operational model.

Geisinger President and CEO Jaewon Ryu, MD, JD, will be Risant's first CEO, transitioning from Geisinger when the deal closes.

"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," Ryu says. "Kaiser Permanente and Geisinger share a vision for the future of healthcare, 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."

Health systems that join Risant Health "will continue to operate as regional or community-based health systems serving and meeting the needs of their communities, providers and health plans while gaining expertise, resources, and support through Risant Health's value-based platform," KP says.

In addition, Risant Health will operate separately from KP's integrated care and coverage model while building on the mega-system's 80 years of expertise in value-based care. 

"Our mission calls on us to find new ways to promote high-quality, affordable, and evidence-based care with equitable and improved health outcomes," says Greg A. Adams, KP chair and CEO.

"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."