Humana in talks to buy Kindred Healthcare with equity firms: source
Reuters
U.S. health insurer Humana Inc is in advanced talks to acquire acute care provider Kindred Healthcare Inc in partnership with private equity firms Welsh, Carson, Anderson & Stowe and TPG, a source familiar with the matter said on Sunday.
@QNTtH24-2ptv So you will be leaving then? Not wanting a conflict of interest on your conscience and all. Where do you dream this stuff up? Do you really think a company would make a $4.5 billion bid and not think about this?
Humana started out as Nursing Home. Do your research op. The poster who says Humana doesn’t have experience.
Humana has owned many hospitals in the past. I don’t see any conflict
Oooooo. Hospice. We can transition the High utilizers to Hospice. I personally do not feel that Humana has the knowledge or expertise to operate and effective home health care company. But worse yet, this is a huge conflict of interest for an insurance company to own a hospice .
Medicare needs to look at this very closely.
POster, the proposed acquisition has to do with certain stock conditions and two other companies, I think humana may have done layoffs since those roles weren’t needed in the new direction they’re going....they said all along pharmacy, behavioral health and in home. This is step one towards that...all the #hcsrenewal job postings were related to home health, licensure and legalities of home health. I know it’s been hotly debated here, but under a home health license, Medicare reimbursed for what LTIH does for free...I would think licensed LTIH folk would transition easily into the ho e health model, if it’s purchased. The hospice side of it would show a possible in road to palliative care, a big Medicare reimbursement area, that also involves pharmacy. But, I digress. The layoffs were because the roles or amount of people in those roles didn’t fit with the new model. It would be nice if humana just said that, vs how it’s playing out
@QNTtH24-oes Not sure how you come to that conclusion.
I am not "hating" or "bitter" for the mean trolls that monitor this site but strange they had to make a good business decision to let people go at the the holidays but can acquire a new company. Wow
I can believe it. Someone told me about some proposed changes to LTIH becoming hands on so this correlates to this article. I guess we’ll wait and see. Practicing at the top of your license.
Humana in talks to buy Kindred Healthcare with equity firms: Source
Published 45 Mins Ago
Reuters
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U.S. health insurer Humana is in advanced talks to acquire acute care provider Kindred Healthcare in partnership with private equity firms Welsh, Carson, Anderson & Stowe and TPG, a source familiar with the matter said on Sunday.
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A deal would provide the latest example of the growing convergence between consumer health and insurance, following CVS Health's agreement earlier this month to acquire Aetna for $69 billion.
Humana has been investing significantly in its home health capabilities, Humana At Home, which the insurer touts as a compliment to its Medicare Advantage franchise. If the negotiations are successful, a deal could come as early as this week, the source said, asking not to be identified because the matter is confidential.
The Wall Street Journal, which first reported on the talks, said the deal could value Kindred at $9 per share. On Friday, the company's stock closed at $8.60, giving it a market value of $750 million.
Welsh, Carson, Anderson & Stowe and TPG would take over Kindred's facility-focused business, which includes long-term acute care hospitals and rehabilitation centers. The private equity firms together with Humana would get Kindred's home and hospice care operations, the WSJ reported, citing sources it did not identify.
Kindred and Humana did not immediately respond to requests for comment. TPG and Welsh, Carson, Anderson & Stowe also were not immediately available for comment.
Based in Louisville, Kentucky, Kindred is the largest home healthcare provider and hospice operator in the United States.
The company, which has long-term debt of $3.2 billion, has suffered due to its reliance on the Medicare federal health insurance program for revenue. It is also at risk for changes to how post-acute care services are reimbursed if U.S. President Donald Trump restructures the health-care system.
Earlier this year, Kindred announced plans to coordinate skilled nursing operations with Genesis HealthCare, one of the largest operators of skilled nursing facilities in the United States.
In 2015, Kindred acquired Gentiva Health Services for $1.8 billion, turning it into the biggest U.S. provider of home health and hospice care, but also saddling it with debt.
Health insurance companies are exploring new ways to diversify their revenues with acquisitions in acute care after federal regulators blocked two major mergers in the sector, and insurance exchanges set up under the Affordable Care Act, popularly known as Obamacare, came under pressure from Republicans.