42.5 F
Fort Worth
Thursday, December 3, 2020
Banking Insurer Humana, along with TPG Capital, buying part of Kindred Healthcare

Insurer Humana, along with TPG Capital, buying part of Kindred Healthcare

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

Humana will buy part of Kindred Healthcare’s home health business, the latest example of a health insurer growing more involved in the delivery of care on top of handling the bills for it.

The insurer said Tuesday it will pay about $800 million in cash for a 40-percent stake in the business, which includes hospice care and serves about 130,000 patients daily. The remaining stake will be purchased by the private equity firms TPG Capital of Fort Worth and San Francisco and Welsh, Carson, Anderson & Stowe.

Those firms also will acquire the rest of Louisville, Kentucky-based Kindred Healthcare Inc., which runs long-term acute care and inpatient rehabilitation hospitals.

Humana, which already operates a home health business, said the deal will help it keep costs down, improve health and manage chronic conditions. CEO Bruce Broussard said in a prepared statement that care delivered at home is a “vital element” in improving the health of older people living with chronic conditions, which can include diabetes or heart disease.

Humana Inc., also based in Louisville, is one of the nation’s biggest providers of Medicare Advantage plans, which are privately run versions of the federal Medicare program for people who are over 65 or disabled. It also provides Medicare prescription drug coverage and offers commercial insurance.

Health insurers and other entities have been pushing deeper into managing or providing patient care in order to cut costs and improve quality. The basic idea is to help people stick with treatment plans, stay on medication and live healthy lifestyles in order to ward off expensive care like hospital stays.

The trend is drawing concern from some patient advocates who worry that it could lead to fewer doctor choices or other treatment restrictions.

However, economist Linda Blumberg noted that these deals can give insurers more control over provider payment rates, which might help restrain the cost of coverage.

“There is potential to control costs in a way you can’t do when you’re just one among others trying to negotiate rates with providers,” said Blumberg, a senior fellow at the Urban Institute’s Health Policy Center.

Earlier this month, CVS Health said it would pay about $69 billion to buy the health insurer Aetna in a deal that will expand the role of its drugstores in managing patient care.

Tuesday’s announcement also comes several days after another insurer, UnitedHealth Group Inc., said it would spend nearly $5 billion deal to buy hundreds of clinics from DaVita Inc. UnitedHealth’s Optum segment runs more than 1,100 primary, urgent and surgery care centers. A company spokesman said UnitedHealth’s Optum business provides care for over 13 million people through more than 30,000 physicians.

Regulators and Kindred shareholders still need to approve Humana’s acquisition, which the companies expect to close next summer. The deal also gives Humana the right to acquire the rest of Kindred’s home health business in a few years.


close






Oh hi there 👋 It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

MedStar and Texas Health Resources to donate ambulance and supplies to Fort Worth Sister City Toluca, Mexico

Toluca, Mexico, capital of the State of Mexico, is the center of a rapidly growing urban area and the fifth-largest city in Mexico, home...

Tarrant County reports 6 COVID deaths as Texas surpasses 9,000 hospitalized COVID patients

Tarrant County Public Health on Tuesday, Dec. 1 reported six COVID-19 deaths. The deceased include two men from Fort Worth in their 70s, a...

Analysis: Despite vaccine hopes, lawmakers plan for more months of pandemic

Editor's note: If you'd like an email notice whenever we publish Ross Ramsey's column, click here. We’re holding two opposing ideas in our heads at...

Grand Prairie Deputy Mayor Pro Tem Swafford dies from COVID

City of Grand Prairie Deputy Mayor Pro Tem Jim Swafford died from COVID-19 Tuesday, Dec. 1, 2020, while hospitalized at Methodist Mansfield Medical Center. He...

Texas Trust appoints Chief Growth Officer

Texas Trust Credit Union has appointed Ron Smith to the new role of Chief Growth Officer, charged with developing and executing data-driven strategies to...