Risant Health, a nonprofit formed under Oakland, Calif.-based Kaiser Permanente, has signed a definitive agreement to acquire Greensboro, N.C.-based Cone Health.
The news comes less than three months after Risant acquired its first health system, Danville, Pa.-based Geisinger Health.
If the transaction closes, Cone Health will operate independently as a regional and community-based health system under Risant, which supports organizations with technology and services to improve outcomes and lower care costs in diverse business models.
"Cone Health's impressive work for decades in moving value-based care forward aligns so well with Risant Health's vision for the future of healthcare. Their longstanding success and deep commitment to providing high-quality care to North Carolina communities make them an ideal fit to become a part of Risant Health," CEO, Jaewon Ryu, MD, said in a June 21 news release. "We will work together to share our industry-leading expertise and innovation to expand access to value-based care to more people in the communities we serve."
Cone Health includes four acute-care hospitals, a behavioral health facility, three ambulatory surgery centers, eight urgent care centers and more than 120 physician practices, according to its website. It has more than 13,000 employees and over 700 physicians, along with 1,800 partner physicians.
The health system also is majority owner of HealthTeam Advantage, a health insurance company founded in 2015. Winston-Salem, N.C.-based Novant Health holds a minority stake in HealthTeam Advantage, which has 17,000 members and offers Medicare Advantage plans to eligible Medicare beneficiaries in certain North Carolina counties.
"As part of Risant Health, Cone Health will build upon its long track record of success making evidence-based health care more accessible and affordable for more people. The people across the Triad will be among the first to benefit," Cone Health President and CEO Mary Jo Cagle, MD, said.
Cone Health will maintain its brand, name and mission, and maintain its own board, CEO and leadership team. It will continue to work with health plans, provider organizations and independent physicians.
Dr. Cagle said she does not anticipate changes in the types of care Cone Health provides as a result of becoming part of Risant.
The proposed transaction is subject to regulatory approvals and closing conditions.