KBHC Panel Spotlight - Consolidation: The Future of Horizontal Consolidation Among Health Systems

Last year Kaiser Permanente made headlines in its decision to acquire Geisinger Health through a nonprofit subsidiary named Risant Health. Geisinger is a community-based health system that’s been recognized for its unique models to offer quality care to managed Medicaid, Medicare, and rural populations in Pennsylvania. Geisinger brought in $6.9 billion in revenue in 2022 and provides care for about 600,000 plan members. Kaiser believes the scale and experience Geisinger brings can allow it to expand its value-based care offering in new markets. However, Risant health is separate from Kaiser’s traditional integrated care delivery model and has ambitious plans to continue expanding beyond the Geisinger Acquisition with a goal of breaking $30 billion in revenue over the next five years. Though value-based care holds promise in improving patient outcomes, the recent mega deal hasn’t prevented immediate scrutiny from lawmakers who are weary increasing consolidation in the provider space increases cost to patients and reduces access.

Juxtaposed to Kaiser’s expansion of its value-based care model through Risant Health is the recent combination of NorthShore University Health System and Edward-Elmhurst Health here in Illinois. The combination of these two entities, branded as Endeavor Health, has created the third largest health system in the state with stated goals of increasing access to additional specialties and improving their patient experience. 

At the Kellogg Business of Healthcare Conference, we are excited to host a panel discussion on the rapid pace of horizontal consolidation among health systems. During the hospital consolidation panel, we aim to provide insight into the strategic goals that underly these transactions, examine the impact on patients and other stakeholders, and understand the role played by regulatory agencies. We have recruited an exciting group of experts from hospital executives, advisors, and healthcare economists for this discussion:

  • Shivani Bautista, JD – Chief Legal Officer and Corporate Secretary, Endeavor Health

  • Jim Beckemeyer, MBA ’95 – Senior Director, Strategy Implementation, Kaiser Permanente

  • Cory Capps, PhD ’00 – Partner, Bates White Economic Consulting

  • Eric Mayeda, Co-Leader, Strategic Transformation, Chartis

We look forward to seeing you all there!

 

 

 Sources

KBHC Kellogg