Next Steps: Regulatory Review
Federal and state regulators must approve the transaction. Adams did not mention the possibility of discussing the acquisition with other medical organizations, but Kaiser said he will invest his $5 billion in Lysant over the next five years, in addition to spending on Kaiser’s core business. said he hopes to The company plans to add five or six healthcare systems to He Risant in the meantime.
Why it matters: Better integration
Serving 13 million people in eight states and the District of Columbia, Kaiser has a reputation for providing low-cost, high-quality care. This organization operates like a health maintenance organization, where a certain amount of money is paid to care for someone through a closed network of hospitals and doctors. However, it has not succeeded in providing the model widely throughout the country.
The creation of Risant Health represents an opportunity for Kaiser, which had $95 billion in revenue last year, to become a larger and more impactful organization by collaborating with other hospital groups and healthcare plans.
The formation of the company is also a response to the rapid changes occurring in the healthcare industry. Large commercial companies such as health insurers, pharmacy chains, and other corporations are buying up doctors’ offices and urgent care centers, further eating into the nation’s healthcare budget.
In line with Kaiser’s model, the regional health system under Lysant will invest in technology and preventive care to keep patients healthy, Adams said, requiring cheaper specialist and hospital care. It is said that it will be
As the country’s system and new players get bigger, “they’re pulling away from our communities and community healthcare systems in some ways,” he said.
This new venture is “a way to ensure that non-profit, value-based community health is not only alive but thriving in this country,” Adams added.
Background: harsh environments
As hospital groups emerge from the pandemic, many hospital groups are struggling with rising material and labor costs. Both Kaiser and Geisinger have reported operating losses in his 2022.
“Covid really shows how our health systems and communities are at risk without integrated value-based relationships,” Adams said.
While Geisinger has long focused on improving care, Dr. Ryu said health systems will benefit from Kaiser’s ability to invest in preventive care and the kind of technology needed to keep people healthy. I was. “This model makes sense for us as a way to accelerate and enhance these capabilities and bring better health to our communities,” he said.
Kaiser’s specialization in providing care under fixed-payment arrangements has made it one of the largest insurers in the lucrative Medicare Advantage market. In this market, private plans are sold as an alternative to traditional Medicare.
But Kaiser has not escaped criticism for overcharging the federal government, and some say Kaiser’s financial model means it may take longer to provide expensive services to patients. Kaiser defends its billing practices, saying doctors work with patients to provide the most appropriate care.
