Kaiser to invest $2.2B into Geisinger
May 18, 2023
1 hr ago
Kaiser Permanente will inject at least $2.2 billion into Geisinger Health over the next decade, including a big investment in research, according to Kaisers financial statement released earlier this week.
Details of the partnership first announced late last month as part of the launch of Risant Health, are embedded in the investment details of Kaisers latest financial statement. Geisinger is the first of what officials said could be a handful of health systems that become part of the Risant umbrella.
Kaiser previously announced it planned on investing $5 billion to bolster Risant and expand and accelerate the adoption of value-based care in diverse, multi-payer, multi-provider, and community-based health system environments. This weeks report offers the first glimpse into what that might look like.
Pending regulatory approval, the financial statement also notes Kaiser expects to close the acquisition of Geisinger in 2024.
Geisinger President and CEO Dr. Jaewon Ryu will transition to become the head of Risant. Following the announcement of the partnership last month, Ryu said the pairing could offer a turbo boost for the systems.
According to Kaisers financial statement, Risant will make a minimum of $2 billion available to Geisinger as needed through Dec. 31, 2028, to support necessary hospital, ambulatory facility, technology, and other strategic and routine capital, including funds generated internally by Geisinger and Risant.
Additionally, no less than $100 million through the end of 2028 will be made available to support the expansion of Geisingers health plan and care delivery services, within Geisingers footprint.
Risant will also invest at least $115 million annually for Gesingers research and education enterprises for a minimum of 10 years after the acquisition is completed. That funding could be adjusted for inflation and other factors, the financial statement noted.
Geisinger is excited for what joining Risant Health will mean both for our system and for the communities we serve in Pennsylvania, Ryu said following the announcement in April. 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.
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Friday, May 19, 2023 at 12:30 am