Danville-based Geisinger Health announced it expects to be acquired by Kaiser Permanente and its new nonprofit organization.
According to a statement from Geisinger, Risant Health is a nonprofit created by Kaiser Foundation Hospitals to expand access to “value-based care.”
“This is technically an acquisition, but not your typical acquisition,” said Geisinger CEO Jaewon Ryu, MD. “It’s designed to enhance and boost our capabilities.”
Geisinger will be the first health system to join Risant Health. Pending regulatory approval, Geisinger will become part of Risant Health “through acquisition,” according to the system’s statement.
Ryu said Geisinger will retain its name, brand, base of operations and insurance plan.
“This preserves all the local-ness of Geisinger,” he said.
He said he does not anticipate staff impact and all Geisinger Health Plan operations will remain local. The Geisinger Commonwealth School of Medicine will also remain the same, Ryu said.
The acquisition should not have any impact on current Geisinger projects such as the possible expansion of the emergency room in Scranton.
Ryu will also leave his current role as president and CEO of Geisinger Health to become CEO of Risant Health when the transaction closes. Risant Health will have headquarters in Washington D.C.
Ryu did not provide a price for the acquisition but stated “investments are being made” in Geisinger’s capabilities.
The acquisition will need state and federal approval before moving forward, Ryu said.
