Multistate integrated delivery networks are seeking scale and control
The third wave of IDN consolidation
Coming off three blockbuster deals in 2022, this was poised to be a breakout year for mergers of integrated delivery networks (IDNs). The April announcement by Kaiser Permanente and Geisinger Health to form Risant Health, while initially surprising, fits a recent pattern of cross-regional IDN consolidation among secular nonprofit systems, often with significant insurance operations. The partnership between California-based Kaiser and rural Pennsylvania’s Geisinger is part of a third wave of IDN consolidation, with nonprofit IDNs quickly crystallizing into a few national players and partnerships, distinguished by degree of centralized controls and level of comfort with risk acceptance.