Issue link: https://beckershealthcare.uberflip.com/i/1501606
7 CFO / FINANCE Kaiser Permanente acquiring Geisinger to launch Risant Health By Andrew Cass O akland, 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. 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. e deal is subject to regulatory approval. e transaction is not structured as a traditional purchase, but Kaiser Permanente is expected to provide about $5 billion in funding for Risant Health, e 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. n 'We never saw Risant Health coming': What leaders are saying about the Kaiser- Geisinger deal By Giles Bruce K aiser Permanente said there was a near- ly sixfold increase in social media chatter about value-based care in the week after it unveiled its new company, Risant Health, and first member health system, Danville, Pa.-based Geisinger in late April. In a May 8 news release, the Oakland, Ca- lif.-based health system also highlighted quotes from several national experts about the move: — "We were all so focused on what will be the next healthcare move of Amazon, Microsoft, and Google that we never saw Risant Health coming!" said Vikas Chowdhry, founder of Trau- maCare.AI. — "Risant (will be) a 'repository of knowledge,' with potential for its member health systems to work toward a common goal of lower costs and better access to care," said Kevin Holloran, se- nior director at Fitch Ratings. — "Two of the titans of systems-based care to manage costs and drive measurable outcomes. … My optimism hopes for ripple impacts to drive more hospitals towards value," said Brett Daniel, MD, chief medical information officer of Optum Washington. — "That's a big deal in U.S. healthcare," said Eric Topol, MD, founder and director of the Scripps Research Translational Institute. — "Whoa! Kaiser is one of the nation's leading healthcare organizations structured to reduce costs and improve outcomes. Geisinger is one of the most technologically innovative health systems in the US — driving tons of research. Love to see what comes of this," Michael Mina, MD, PhD, chief science officer of eMed. — "The Kaiser-Geisinger partnership creates an enabling path for health systems to move down the journey to value-based care. For me, it was a really exciting development. ... I think there are only wins in this for patients," said Linda Finkel, CEO of Avia. n House bill would give FTC authority over nonprofit hospitals By Mackenzie Bean L awmakers are reviving efforts to give the Federal Trade Com- mission authority to investigate nonprofit hospitals for anti- competitive behavior. Rep. Victoria Spartz, a Republican from Indiana, reintroduced a bill April 20 that would allow the FTC to enforce antitrust rules among the nation's more than 2,900 nonprofit hospitals. Ms. Spartz first introduced the bill, dubbed the "Combatting Hospital Monopolies Act," in December 2022. Lawmakers are also slated to discuss tax-exempt hospitals and strategies to increase healthcare competition during two House committee hearings scheduled for April 26. The legislation comes amid increased scrutiny and intervention by the FTC on health system mergers and acquisitions. n