Regional consolidation among U.S. IDNs

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.