Wednesday, April 28, 2021

Humana Buying Out Partners in Home-Health Business

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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