- Humana is acquiring a major stake in Kindred Healthcare’s home care division for about $800 million in the latest move by an insurer to lower costs by directly providing healthcare services
- Humana will receive 40% of Kindred at Home as part of a joint venture with private-equity firms TPG Capital and Welsh, Carson, Anderson & Stowe that is acquiring Kindred Healthcare for about $4 billion
- Kindred Healthcare will be split into two companies, with the remaining 60% of Kindred at Home being owned by Humana’s partners
- Humana will not be involved in the other company, which will consist of Kindred’s long-term acute care and rehabilitation businesses
- Kindred at Home employs 40,000 caregivers who provide home healthcare to about 130,000 patients daily
- According to Forbes, the acquisition will further Humana’s strategy of keeping patients — particularly members of its Medicare plans for seniors — out of the hospital and cared for in lower-cost outpatient settings
- Humana’s move is the latest by a health insurer company to form closer relationships with providers of lower cost medical care
- The Optum unit of UnitedHealth Group earlier this month said it was buying DaVita Medical Group for $5 billion while pharmacy chain CVS Health announced it would buy Aetna, the nation’s number 3 insurer, for $69 billion.
