Humana is shelling out $5.7 billion to take 100% ownership of Kindred at Home. Currently, Humana only controls 40% of Kindred at Home. Kindred’s home health operations will be combined with Humana’s related lines of business under the brand CenterWell Home Health. At this time, Humana has said it will not expand its minority interest in Kindred’s hospice and community-care operations.
Humana is in a prime position to capitalize on the projected growth of home health services over the next decade. While analysts differ on the numbers, everyone agrees that the market will grow significantly in the coming years. Humana is one of the few companies that can be the payer and the provider as a purveyor of both Medicare Advantage plans and home health services. Humana’s economy of scale and vertical integration gives them an edge over most traditional home health providers.
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