Kaiser Permanente is expanding its footprint into Nevada through a new partnership with Renown Health, specifically its insurance branch, Hometown Health, to establish Kaiser Permanente Nevada. This marks Kaiser Permanente’s inaugural entry into the Nevada healthcare market, reinforcing its commitment to providing comprehensive health insurance and care services.
The collaboration was unveiled by Renown Health, which operates a prominent healthcare network in Reno. The newly formed entity, Kaiser Permanente Nevada, will integrate health insurance with an outpatient care delivery system, allowing both organizations to maintain their individual hospital operations while providing cross-access to services. Members enrolled in Kaiser Permanente Nevada will have access to facilities in California, while California-based enrollees can utilize Renown’s services in Northern Nevada.
According to Dr. Brian Erling, CEO of Renown, this unique joint venture is unprecedented for Kaiser Permanente. “This model has not been done anywhere by Kaiser,” he stated, emphasizing the innovative nature of the collaboration. CEO Greg Adams also articulated the importance of this expansion, saying it answers community calls for Kaiser Permanente’s value-based care model in Nevada. The partnership is seen as a way to enhance healthcare access, support local employers, and improve community health.
The decision to partner with Kaiser Permanente arises from Renown Health’s need to strengthen its position in the insurance sphere following challenges posed by the COVID-19 pandemic. Hometown Health’s medical loss ratio and membership numbers have suffered due to rising costs and competition, illustrating the urgent necessity for scale to thrive in a post-pandemic health insurance market. With approximately 13 million members, Kaiser Permanente brings significant negotiating power, particularly regarding pharmaceutical costs, which are crucial for managing financial sustainability.
Adams, who previously served as a nursing leader at Washoe Medical Center, reflected on the significance of returning to support the community with this venture, partnering with an organization that shares a similar not-for-profit mission. The partnership aims to provide affordable, high-quality care close to home, ultimately benefiting the wider population in Nevada.
Next steps for the partnership involve seeking regulatory approvals, a process that Renown Health anticipates will take several months at the state level. This initiative represents the culmination of a two-year journey for Renown in identifying the right insurance partner, with a selection process that led to Kaiser Permanente’s involvement after extensive negotiations lasting over a year and a half.
Renown’s leadership expected the partnership to yield cost benefits for consumers amidst rising premiums in the health insurance exchange market. Moreover, it promises enhanced connectivity for members across states, allowing those in the Hometown Health network to access care in areas where Kaiser Permanente is operational, such as California and Hawaii. Conversely, Kaiser Permanente members will receive care in Renown facilities.
As the integration proceeds, current customers of Hometown Health will experience no immediate changes until the 2026 plan year, when new Kaiser plans will begin to emerge. There are no apprehensions expressed by Erling regarding potential competition from Kaiser Permanente, as he emphasized a collaborative approach to healthcare delivery in Nevada. The partnership, he stated, is an exciting opportunity to enhance local health services while still honoring the commitments of both organizations to patient-centered care.
