December 4, 2015

Group Health Cooperative joins as eighth region

Combined Benefits

Better together: In this increasingly competitive market, Group Health will best be able to tackle the emerging issues and future needs for members, patients and the workforce — rising drug costs, health IT, etc. — by joining forces with Kaiser Permanente. Together, the organizations can meet future needs through an aligned approach to health care, common values and with the strength of a community-oriented organization already serving more than 10 million people.

Better solutions for our combined customer base: Group Health and Kaiser Permanente will benefit from a strong combined customer base, including nationwide businesses with operations in the eight states and the District of Columbia, in which Kaiser Permanente currently operates. Kaiser Permanente coverage that spans the West Coast — from Seattle to San Diego — will enable us to meet our large group customers in the locations where they operate.

Group Health members continue to receive great care: Group Health members will continue to receive great care from the great physicians of Group Health Permanente, P.C., an independent, physician-led multi-disciplinary medical group, which already has a strong relationship with the Permanente Medical Groups through GHP’s association with The Permanente Federation.

A map of the U.S. with the Kaiser Permanente regions called out in a darker blue and with the Group Health logo added above the Northwest region
Transaction Details

Through this transaction, Kaiser Permanente will acquire Group Health Cooperative, which will become the eighth Kaiser Permanente region.

Unlike other acquisitions — such as those between for-profit businesses, which have stockholders as equity owners, for example — this transaction is between two not-for-profit, charitable organizations. Recognizing that Group Health Cooperative is governed by its individual cooperative members and ultimately “owned” by the communities it serves, the proceeds of this transaction — $1.8 billion — will be devoted to fund the creation of a new, not-for-profit community foundation, with the goal of improving community health. The goal of the foundation is aligned with Kaiser Permanente’s mission and commitment to community benefit and improving community health.


This transaction is subject to voting member and regulatory approval, and is expected to close by late 2016. Members of Group Health Cooperative will vote on the agreement, a process expected to take two to four months. Regulatory filings and approvals may take several months as well.

Key Facts

Kaiser Permanente

Group Health

Headquarters: Oakland, CA

Members: Nearly 10.2 million

Headquarters: Seattle, WA

Members: Nearly 590,000

Regions: Colorado, Georgia, Hawaii, Mid-Atlantic States (VA, MD, DC), Northern California, Northwest (Oregon, Southern Washington), Southern California

Service Areas: All or parts of 20 counties in Washington and two counties in North Idaho

Hospitals: 38

Medical Offices: 619

Physicians: 17,791

Employees: 177,445

Nurses: 49,778

Primary Care Clinics: 25

24/7 Urgent Care Centers: Bellevue, Capitol Hill Campus, Tacoma locations

Outpatient Surgery Centers: Bellevue, Capitol Hill Campus, Olympia, Tacoma

Physicians: 1,000

Employees: 6,900

Operating Revenue (2014): $56.4 billion

Operating Revenue (2014): $3.7 billion