Dive Brief:
Risant Health completed its purchase of Cone Health — a five-hospital health system based in Greensboro, North Carolina — on Tuesday, the system’s second acquisition since launching earlier this year.
Risant will invest at least $1.4 billion into Cone over the next five years to develop Cone facilities and integrate the system into Risant, and up to $300 million more over 10 years to support Cone’s growth, according to a November securities filing from Risant’s parent company, Kaiser Permanente.
Cone Health will maintain its brand, board and leadership team, including CEO Mary Jo Cagle, according to the press release.
Dive Insight:
Risant first unveiled plans to acquire Cone Health in June. The deal is one of at least five planned buys for Risant, a nonprofit health system formed last year by Kaiser to acquire and operate nonprofit health systems.
Kaiser has pledged to invest $5 billion into Risant over five years and predicts the system will generate between $30 billion to $35 billion in total revenue during that time.
Cone Health was an attractive target for acquisition due to its “longstanding success,” Jaewon Ryu, Risant’s CEO, said in a statement in June.
The health system reported $3.1 billion in operating revenue during its 2024 fiscal year, compared with $2.8 billion during 2023, driven by an uptick in patient volumes.
Cone will gain access to Risant’s value-based platform, which packages tools, capabilities and services from Kaiser Permanente, Risant, Geisinger and health systems that join Risant moving forward, according to the release. The platform aims to increase access to care and lower total cost.
Risant began rolling out the platform at Danville, Pennsylvania-based Geisinger — its first acquisition — during the third quarter this year.
