Insurer agrees to pay
$5.7 billion to take full control of Kindred at Home
By Micah Maidenberg April 27, 2021 6:34 pm ET
Humana Inc. agreed
to take full control of home-health provider Kindred at Home by buying out two
investors that currently own the majority of the company, deepening its
exposure to care services delivered outside traditional settings.
Humana said Tuesday
that it would pay $5.7 billion to acquire the 60% interest in Kindred from the
private-equity arm of TPG and Welsh, Carson, Anderson & Stowe, another
private-equity firm.
The
health-insurance company said it owns 40% of Kindred, a business it described
as the nation’s largest home-health and hospice provider, with 43,000
caregivers working in 40 states.
Demand for home-based health care has
been rising as the U.S. population has aged, and some
forecasters have predicted that the need for aides who carry out such work
would exceed supply in the coming years. Spending on home-health services was
forecast to rise to $201.3 billion by 2028, up from $116.2 billion last year,
according to projections last year from staff at the federal Centers for
Medicare and Medicaid Services.
In addition, President Biden’s proposed infrastructure bill includes $400 billion to provide seniors with more medical care at their homes.
More… https://www.wsj.com/articles/humana-buying-out-partners-in-home-health-business-11619562869
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