With Kindred’s scale, Humana stands to gain significantly from divesting its hospice segment, likely seeking a substantial price for the asset. The integration is expected to complete in 2022. CenterWell is payer-agnostic, meaning that patients do not have to be Humana beneficiaries to receive care. ![]() Humana will integrate Kindred’s home health operations into its Home Solutions business under the company’s recently unveiled CenterWell brand. The company also expects to see substantial cost savings through reduced hospitalizations and skilled nursing admissions as more care moves into the home. Selling off the hospice segment would allow Humana to capitalize on record high valuations in the hospice M&A market while allowing them to focus on their core home health business. Kindred is the largest provider of home health services by market share in the United States - and the second-largest hospice provider, according to LexisNexis. “The addition of Kindred at Home will help us significantly expand our home health offering, with a focus on accelerating clinical innovation, improving patient outcomes, increasing satisfaction for patients and providers, reducing the total cost of care and providing greater value for health plan partners.” “We are pleased to complete the acquisition of Kindred at Home and fully integrate their home health services and clinical expertise into Humana’s value-based home health business,” said Bruce Broussard, Humana’s president and CEO. The company will continue to partner with hospices through its preferred provider networks. Humana has signaled its intentions to retain the home health component of the Kindred at Home business and spin off and sell the hospice segment. ![]() The price tag includes Humana’s equity value of $2.4 billion from its existing 40% ownership of the business plus an additional $5.7 million. Through this transaction Humana gains the remaining 60% from private equity firms Welsh, Carson, Anderson & Stowe (WCAS) and TPG Capital. The company obtained a 40% stake in Kindred in 2018. (NYSE: HUM) has completed its purchase of Kindred at Home in an $8.1 billion transaction.
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