Risant affiliate Geisinger plans $880 million infrastructure expansion

In late June, Cone announced plans to be acquired by Washington, D.C.-based nonprofit charitable group Risant, which is affiliated — but run separately from — California-based Kaiser Permanente. The acquisition is projected to close by year’s end.

Risant represents a collective of doctors, hospitals and health insurers with a short-term goal of acquiring and overseeing four to five not-for-profit U.S. healthcare systems.

Risant’s first acquisition in April 2023 involved Geisinger Health, which serves rural parts of Pennsylvania.

According to Modern Healthcare, Risant has pledged to Geisinger at least $100 million through 2028 for expanded care delivery and health plan services as well as $115 million a year over the next decade to support research and education initiatives.

On Tuesday, Geisinger unveiled plans for an $880 million expansion of Geisinger Medical Center that features a new 11-story tower that will double the square footage of its emergency department and expand it from 45 to 60 beds. The tower is projected to be fully operational in 2028.

The initiative also will involve updated and expanded intensive care units and operating suites, as well as the hospital becoming a 100% private-room facility and a proposed multi-level parking garage.

Risant chief executive Jaewon Ryu said that “Cone Health’s impressive work for decades in moving value-based care forward aligns so well with Risant Health’s vision for the future of health care.”

Both companies also said that Cone Health would “maintain” its brand and board as well as chief executive and leadership team.

Cone serves about 500,000 patients, foremost in the Triad. It has more than 13,000 employees, more than 700 physicians and 1,800 partner physicians. Its network features four acute-care hospitals, a behavioral health facility, an accountable care organization and a health plan.

The confidence in Cone Health’s financial stability and strategic vision was displayed foremost in April in the unveiling of an ambitious $150 million community wellness initiative “to improve health and increase life expectancy in underserved areas” through real-estate purchases and opening new clinics.

Although the focus would be primarily on east Greensboro, ripple effects were planned throughout its market.

Cone chief executive Dr. Mary Jo Cagle said part of the willingness to align with Risant is that the Cone board, management and clinical staff became convinced that partnering would enable the system to accelerate its shift to value-based care and promoting health equity.

Cagle said the groups won’t be able to provide a precise capital investment commitment until after regulatory approvals are secured and the transaction is closed.

“Of course, the finance piece was important to everyone,” Cagle said. “Let’s just say there is a significant enough (financial commitment) that our board was willing to vote yes to this deal.

“But we also looked at would this help us advance our strategy, and do it in a way that would be faster and less expensively than we could do it on our own.”

Cagle said that with Geisinger being based in rural Pennsylvania, “I’m really excited about what we can learn to help us better provide access and serve our rural areas. We have a lot we can improve upon in Rockingham County.”