Oakland, Calif.-based Kaiser Permanente has signed a definitive agreement to acquire Seattle-based Group Health Cooperative, which includes a healthcare and insurance arm like Kaiser.
Here are five things to know about the deal.
1. Through the acquisition, Kaiser would greatly expand its geographic footprint in the state of Washington. The combined organization will service communities along the West Coast from San Diego to Seattle.
2. Kaiser will acquire Group Health for $1.8 billion. Those funds will be used to establish a new nonprofit community foundation in Seattle.
3. "This agreement is a natural extension of our long, successful working relationship with Group Health, and it provides us with the opportunity to expand access to high-quality, affordable care and coverage," said Kaiser Foundation Health Plan Chairman and CEO Bernard J. Tyson. "Kaiser Permanente and Group Health Cooperative are a natural fit."
4. By joining forces, both organizations expect to better meet the needs of individuals as well as large commercial and national accounts with employees who live and work in the state of Washington.
5. The transaction requires the approval of the voting members of Group Health as well as regulatory approval. Kaiser said it expects the deal to close by late 2016.
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