September 16, 2022
Humana will spend up to $550 million to acquire the first set of clinics it built with a private equity firm, Chief Financial Officer Susan Diamond said during a meeting with investors Thursday.
Beginning in 2025, the health insurance company will use a mix of debt and cash to purchase 20 CenterWell Senior Primary Care clinics erected through a joint venture with Welsh, Carson, Anderson & Stowe, Diamond said. The investment represents the first of many Humana will make to grow its primary care services for older adults, she said.
“We plan to expand our primary care platform to build on our leadership position in this space, with the expectation that our earnings from this business will become a meaningful contributor to enterprise earnings as additional cohorts are acquired from the JV and the business continues to mature and scale beyond 2025,” Diamond said.