Humana and private equity firms TPG Capital and Welsh, Carson, Anderson Stowe Wednesday said they have finished their $1.4 billion merger of Curo Health Services from Thomas H. Lee Partners in a latest bid by a insurer to grow a outpatient medical services for seniors.
It’s a latest pierce by Humana to enhance into medical caring services to element a flourishing Medicare Advantage business . Humana will have a 40% minority seductiveness in Curo, that provides hospice to patients in 245 locations in 22 states, a companies said.
The shutting of a Curo understanding comes reduction than dual weeks after Humana finished a merger of a Kindred during Home multiplication of Kindred Healthcare. In that $4 billion deal, Humana is partial of a same consortium that includes TPG and Welsh, Carson, Anderson Stowe.
“The Consortium intends to mix Curo with a hospice business of Kindred during Home to emanate a country’s largest hospice operator,” Humana and a private equity firms said in a corner statement.
Humana joins rivals including UnitedHealth Group, Anthem, Aetna and Cigna to accelerate their ties to medical caring providers in a approach that should flue some-more seniors from doctors and clinics to word companies. Insurers are relocating aggressively into a business of providing health advantages to seniors by Medicare Advantage (MA) plans, that insurers sell to seniors around contracts with a sovereign government. MA skeleton yield additional advantages and services to seniors than normal Medicare, such as illness government and helper assistance hotlines, with some also providing prophesy and dental caring and wellness programs.
Insurers see acquisitions of providers who provide Medicare patients as a approach to close in some-more business and close out providers dependent with other health plans. Kindred during Home has “significant overlap” with Humana Medicare Advantage membership, Humana executives have said. About 130,000 patients any day are cared for by 40,000 Kindred during Home medical caring providers, Humana has said.
Currently, just underneath 35% of Medicare beneficiaries, or about 20 million Americans, are enrolled in MA plans. But Medicare Advantage enrollment is projected to arise to 38 million, or 50% marketplace invasion by a finish of 2025, L.E.K Consulting projects.