Oakland, Calif.-based Kaiser Permanente completed its $1.8 billion acquisition of Seattle-based health plan Group Health Cooperative. The integrated healthcare system now provides coverage to more than 11.3 million members in eight states and residents in Washington, D.C.
Under the terms of the agreement, Kaiser will invest $1 billion to expand Group Health's facilities and technology to improve its services in the next decade. The organization will also rebrand itself as Washington Permanente Medical Group. There will be no immediate changes to members' care or coverage during the transition.
The two institutions began discussing a possible merger agreement in December 2015.
"We are proud to extend our integrated model, delivering the future of health and healthcare to the residents of Washington state," said Bernard Tyson, chairman and CEO of Kaiser Permanente. "Since our inception 71 years ago, we have continued to deliver high-quality, affordable and accessible coverage and care to more people and communities in ways that align with our mission. Kaiser Permanente and Group Health have had a working relationship stretching back nearly 20 years, and this collaboration has resulted in high-quality care outcomes and medical excellence. We are honored to build upon the legacy of healthcare leadership in Washington state."
"Kaiser Permanente is recognized by industry experts for high-quality care year after year, and this acquisition brings together two leaders in integrated care delivery," said Steve Tarnoff, MD, president and executive medical director of Group Health. "The impact on care delivery and benefit to our members and patients will be tremendous, through improvements in technology, added capital resources and a new partnership with 19,000 Kaiser Permanente physicians in both evidence-based care delivery and clinical research. These benefits will be felt by Kaiser Permanente members in Washington for years to come."