Judy Danielson’s Post

This week, we're analyzing the latest updates on Risant Health, the nonprofit health system created by Kaiser Permanente in April 2023. Kaiser announced its Q2 earnings, closely followed by unveiling new plans for North Carolina-based Cone Health.    If you missed our previous post about Risant Health, catch up here: https://lnkd.in/eWgfXAXT   Our three things that matter:    1. Risant’s decision to acquire Geisinger in March of this year indicates strong returns. Kaiser reported $7.4B in first-quarter income, with about $4.6B attributed to a non-recurring operating gain from the acquisition. Additionally, experts posit that the acquisition is accelerating Kaiser’s performance and operations. The company’s financial reports parallel this theory: in the second quarter, Kaiser’s operating margin rose to 3.1%, up from 2.9% during the same time last year.    2. Kaiser is establishing a strong foothold in value-based care across diverse markets, particularly as it seeks to revolutionize healthcare delivery and access. Risant’s acquisition of Cone Health is expected to be finalized in early 2025, pending regulatory approval. This marks the second major acquisition for Risant, following Geisinger. While the immediate financial impact on Kaiser’s bottom line may be limited due to its size, the acquisitions create a strategic pathway for Kaiser to establish itself as a leader in the value-based care sector.    3. Risant plans to invest $1B in Cone Heath over the next five years, underscoring Kaiser’s commitment to this venture and the potential long-term impact of this substantial capital infusion. The investments will focus on facility upgrades and health equity initiatives. Additionally, the allocation of up to $400 million for integration into the network and $300 million for growth opportunities signals a proactive approach to ensuring Cone Health’s successful assimilation into the Risant ecosystem. As Risant continues to expand its influence in value-based care, what do these developments mean for both patients and other healthcare organizations? Will any challenges arise in integrating these new systems? Source: Healthcare Dive #ro3llc #RisantHealth #KaiserPermanente #ConeHealth #Healthcare #ValueBasedCare

This article from Enterprise News discusses Steward Health Care's bankruptcy filing and the interest of private equity firms in potentially acquiring the company. Steward Health Care, which operates hospitals and healthcare facilities, filed for bankruptcy protection due to financial challenges exacerbated by the COVID-19 pandemic. Several private equity firms are considering bids to acquire Steward, with discussions ongoing. The potential sale could have significant implications for the future ownership and management of Steward Health Care and its facilities. https://lnkd.in/etY52Wt3

Steward Health Care System, one of the nation’s largest private health systems, recently declared bankruptcy. Is this an isolated incident of the residual effects of a private equity firm taking over a hospital chain? Or is this part of a larger trend? Check out David Ostrowsky’s latest blog – “The Stewardship of Hospitals” – to find out.

📊 As private equity investments in healthcare continue to grow, the recent partnership between Tryon Medical Partners and TPG highlights a significant shift. This move could enhance their ability to compete and expand, but raises questions about potential impacts on patient care and costs. https://lnkd.in/gW52cvr3 What are your thoughts on private equity's role in healthcare? Let us know in the comments below! 👇 #PrivateEquity #HealthcareTrends #PhysicianPractice #PRIMEExits #HealthcareInvesting | WFAE

AAEM champions patient care and physician autonomy, tackling key challenges in hospital-based medicine at the forefront. 🏥 A recent MedPage Today article discusses the growing presence of private equity in healthcare and how it is reshaping our specialty. "At its simplest, the private equity model is wealth extraction," says Dr. Robert McNamara, AAEM Past-President. This year, multiple states introduced bills to create restrictions on private equity's influence on healthcare. AAEM President-Elect, Dr. Vicki Norton shared with MedPage Today that "the problem is none of these bills passed." The work does not stop here. AAEM will continue to stand with EM physicians as their champion and push for change in 2025. Discover how the ongoing trends of private equity impact EM and the advocacy work being done to protect ethical care by reading the article below. 👇 Read the article: https://lnkd.in/gTG3KAeN #AAEM #PrivateEquity #EmergencyMedicine #HealthcareAdvocacy

Have you HERD the news?! MHP and Clinica Family Health intend to merge to become Clinica Family Health and Wellness. As one combined organization we will provide affordable and holistic physical, mental, and dental health services from locations across Boulder, Broomfield, Gilpin, and Adams counties. We anticipate the merger to be completed in September 2024. How exciting is that?! We'll provide quality, comprehensive, and community-based healthcare for thousands of local individuals and families - including those with Medicaid, Medicare, and uninsured. Why are we doing this? The healthcare environment is rapidly changing and access to care in a fragmented system is a continued challenge. This merger will help us remove some of these barriers and bring together more resources to meet the needs of our community. For the past 2 years, MHP and Clinica have been thoughtfully discussing how we could better work together to address these realities. It became abundantly clear that merging—leveraging over 100 years of combined experience and expertise in physical and behavioral health—was the strongest way to effect meaningful change. We look forward to continuing to serve our community in new and exciting ways! Learn more about the merger: https://lnkd.in/gtAqBFKs

Priority Health, a Michigan-based health plan, has finalized the acquisition of Physicians Health Plan of Northern Indiana (PHPNI). This acquisition expands Priority Health's reach into Indiana and Ohio, adding over 50,000 members to its network. The acquisition aligns with Priority Health's strategic growth plans, expanding its geographic footprint and member base. Proceeds from the transaction will support the PHP Foundation, enhancing its ability to improve the health and well-being of underserved populations in Northern Indiana. Learn more: https://hubs.ly/Q031lT710

A Nashville-based #privateequity firm is eyeing Steward Health Care's doctor's group. But given the controversial ownership and sale of the health system from Cerberus Capital Management, which many blame for Steward's current financial struggles, it begs the questions: What role should #PE should play in #healthcare? Is it a force for positive change? Should driving greater profits be a priority for hospitals and health systems?

London-based Heim (formerly known as Ally Health), a healthcare company, has secured €2.65M in seed round. Heim Health partners with healthcare organisations – both in the private sector and the NHS – to manage the end-to-end delivery of their at-home appointments. Read more about it here: https://lnkd.in/gQifQKGZ Kelly Klifa, James Monico, Alexandra (Sasha) T., Heal Capital, Form Ventures, Portfolio Ventures, Houghton Street Ventures

Great article about the impacts and potential misalignment of private equity and healthcare with the Steward Health Care, Medical Properties Trust, Inc., and Cerberus Capital Management. #healthcare, #healthcarerealestate, #healthcareoperations, #privateequity, #healthcarereform, #healthcareinvesting