A few weeks ago, we sent a Report asking whether value-based (VB) contracting had a heartbeat. Today we have evidence that a meaningful heartbeat has been detected.
As reported, 12 % of payers have put their toes into the VB pond. The article below offers new evidence that the heartbeat may be getting louder. Kaiser Permanente has cut a multi-billion-dollar deal with Geisinger Health predicated on the VB model.
The deal sets the foundation for a new entity, Risent Health, with plans to expand to as many as five health systems that will generate north of $30 billion in revenue. Those five or so health systems will also represent upwards of 10,000 prescribing physicians…. all of which can be channeled into select pharmacy fulfillment sources.
Their proposed value-based premise takes on a new dimension. The envisioned large scale enables ‘the entity’ to tackle the big obstacles we noted in our earlier Report holding back VB contracting. Key among these is the ability to analyze outcomes across a very large patient population, critical to obtaining a more accurate determination of meeting… vs. not meeting… contractual VB metrics.
None the less, it will take years to determine the ultimate success of the venture.
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Kaiser to Fold Geisinger into New Value-Based Care Company, Risant Health
The deal creates a new force in the world of value-based health care.
Apr 26, 2023 — Kaiser Permanente and Geisinger Health said they have agreed to create a new company called Risant Health, which plans on making more acquisitions in the years to come.
Under the deal, Geisinger would become a part of Risant and keep its name. The agreement is subject to federal and state regulators.
Like California-based Kaiser and Pennsylvania-based Geisinger, Risant would be a nonprofit; it would be headquartered near Washington, DC.
“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,” according to a statement put out by the companies.
According to The Wall Street Journal, Risant seeks to acquire 4 or 5 more hospital systems and get to total revenue of $30 billion to $35 billion over the next 5 years, and Kaiser is expected to provide about $5 billion in funding to Risant.
Risant Health will operate separately from Kaiser Permanente, while health systems that join the new firm will also retain distinct identities in their communities.
Jaewon Ryu, MD, JD, who became Geisinger’s CEO in 2019, will become the new CEO of Risant Health.
Geisinger includes 10 hospital campuses, a health plan with more than half a million members, and has more than 25,000 employees and more than 1700 employed physicians.
“Through Risant Health, we will make our value-based care expertise, technology and services available to community-based health systems, like Geisinger, to strengthen their ability to provide value-based care models with a focus on high-quality and equitable health outcomes,” said Greg. A. Adams, chair and CEO, Kaiser Permanente, in the statement.
by Allison Inserros, AJMC
