Apr. 26—Health care giant Kaiser Permanente expects to acquire Geisinger Health under a deal making the local system the first to join a new nonprofit committed to quality patient outcomes.

Geisinger and California-based Kaiser said in a news release Wednesday the newly formed Risant Health would expand access to what's known as value-based care in more communities across the country. Kaiser Foundation Hospitals created the nonprofit, which will operate independently and plans to grow by acquiring and connecting additional "likeminded, nonprofit, value-oriented community-based health systems anchored in their respective communities."

The deal won't change the way Geisinger patients and members access and receive care today, Geisinger officials said, noting care teams will remain the same and patients will continue using their same insurance at the same facilities. Geisinger will retain its name and brand and remain based in Danville.

"Geisinger will operate independently under Risant Health and maintain its focus on serving its communities to make better health easier," the local system noted in a statement.

As the first system to join, Geisinger will help develop Risant's strategy and operational model, the release notes. Geisinger President and CEO Dr. Jaewon Ryu will serve as Risant's CEO and transition to that role as the transaction closes.

"(T)his is technically an acquisition, but not your typical acquisition," Ryu said in an interview. "I think it's really structured in a way that preserves sort of local operational ownership, which is important to us."

Specific terms of the transaction were unclear Wednesday; the definitive agreement between Risant and Geisinger remains subject to state and federal regulatory review. The combination of Keiser and Geisinger would have more than $100 billion in revenue, according to The Wall Street Journal.

Asked about possible layoffs, Ryu said the transaction won't have a direct job impact because "the model is really designed to (preserve) that localness of operations." The operations of Geisinger Commonwealth School of Medicine and Geisinger Health Plan insurance will stay local.

The acquisition also won't hinder local Geisinger projects planned or underway, including a state-of-the-art cancer center in Dickson City, an inpatient behavioral health facility in Moosic and the potential expansion of Geisinger Community Medical Center in Scranton's Hill Section, Ryu said.

"I think if anything ... it enhances and bolsters, augments, probably accelerates our ability to do those things," he said.

John Wiercinski, a University of Scranton health administration professor and a former Geisinger senior vice president, said the deal should produce benefits with the United States moving steadily toward value-based care. Value-based care ties health care providers' compensation to patient health outcomes.

"If done correctly, it will certainly provide a decent service to all individuals requiring health care," Wiercinski said.

Factors such as a person's social and economic status, genetics, attention to their health and close access to care matter, he said.

"By combining resources, with an attempt to focus on providing quality based care to not only the people that we currently serve, but new communities and new individuals who have not been adequately served is certainly a noble initiative," he said.

Virginia McGregor, Geisinger Commonwealth School of Medicine board chairwoman and a member of the health system's board, said the deal will someday be seen as "a pivotal moment for healthcare in northeastern and central Pennsylvania."

"And the main reason is that Kaiser Permanente is the number one nonprofit health care company in the country and they are now aligning with us," McGregor said. "And I'm very excited at the opportunities because they align seamlessly with us."

Both systems offer health care and insurance and operate medical schools, with the Scranton school older than Kaiser's, she said. The transaction should not adversely affect the school, she added.

"We share a similar focus on population health and population outcomes. And that's where there's going to be some great synergies, but everyday, Geisinger and Kaiser Permanente have to deliver quality care at affordable prices," McGregor said. "That's a constant challenge. And I think this is going to bode well for us for the future. So I'm really excited about it."

In the news release, Kaiser chair and CEO Greg A. Adams said "we can think of no better organization than Geisinger" to be the first to join Risant.

"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," he said.

Ryu emphasized that Geisinger patients have nothing to fear.

"The care that they get from us, they could expect the same," he said.

Contact the writers: jhorvath@timesshamrock.com; 570-348-9141; @jhorvathTT on Twitter; bkrawczeniuk@timesshamrock.com; 570-348-9147; @BorysBlogTT