Kaiser Permanente signs acquisition deal for Group Health Cooperative
- Kaiser Permanente and Group Health Cooperative announced an agreement Friday for Kaiser to acquire the Seattle-based health system, expanding Kaiser Permanente's reach in the Northwest and adding 590,000 members.
- The deal is still pending, as it awaits approval from Group Health's voting membership and from regulators.
- When implemented, the deal would have Group Health fully integrate and operate as a new, eighth region for Kaiser. The companies say there would be "no immediate changes to the coverage and care currently provided" by either organization.
The deal is the latest in 2015's string of healthcare mergers and acquisitions, and Kaiser bills it as an advancement of its integrated model for healthcare and coverage.
“We want to demonstrate to everyone in this country that our model is more relevant today than ever before,” Kaiser CEO Bernard Tyson was quoted by Modern Healthcare.
The two health systems have a history together from previous contracts and initiatives, and make a strategic fit thanks to their similar business models and missions, Tyson said.
From Group Health's perspective, the deal provides an opportunity for accelerated growth and potential through Kaiser's resources, CEO and president Scott Armstrong stated in the announcement. “Through this acquisition, we'll better be able to tackle rising healthcare costs and implement even more powerful technologies to serve our members,” he said.
- Modern Healthcare Kaiser Permanente to acquire Group Health Cooperative
- PR Newswire Group Health Cooperative to join Kaiser Permanente