Do not be alarmed but according to the news, BlackRock has simultaneously taken over 150 CenterWell Health Clinics in a single day. No reported casualties as of yet. I am sure we will get more from the news media as more details come to light.
16 replies (most recent on top)
@pc And that exactly what you get when private equity firms, such as BlackRock, get involved in healthcare, in this case health clinics. There is a direct correlation. It is not an improvement, it will cause a spiral down, diminishing of returns, this decision Humana had made.
@hy Guaranteed these 150 clinics that are now financially backed by BlackRock (along with being funded by government tax payer dollars as well, might I add), guaranteed that these 150 clinics will undergo more scrutiny, more internal and external audits, will be expected for the nurses, providers, and care coordinators to perform more work with less resources, and patients (aka members) will have diagnosis codes and procedure codes entered that produce higher outcomes of pocket expenses to those members than previous years. And less procedures and less claims will be covered, with an overall health claim denial rate.
@hy I am sure this knowledge gives the nurses and doctors that work in those 150 clinics the warm fuzzies. /sarcasm
@hx The Bottom Line
Humana used BlackRock’s balance sheet to fund an expensive, capital-intensive primary care footprint during a tight financial period. If the clinics succeed, Humana buys them back piece-by-piece; if certain locations fail, BlackRock is left holding the collateral.
Humana effectively took out a $2.8 billion structured loan from BlackRock, using CenterWell’s clinical assets and future earnings as collateral. In the end, it's a right-sizing or downsizing in disguise. All to insulate the Humana brand image from harm.
@hm Making a deal with BlackRock is like making a deal with the devil!
Please keep speaking out against this joining forces with BlackRock on as many social media platforms as you can.
BlackRock is not like other private equity firms. They are one of, if not, the worst of them all. If you research BlackRock, you eill find some bad things.
For those of you who hold shares in Humana or any of the other 4 major For-Profit Health Insurance corporations that are all denying legitimate life saving health claims, such as much needed cancer treatments ordered by their providers.
As you enjoy the profits you are making, I hope you will realize that it is literally blood money that you are enjoying.
So, as you enjoy having a nice thick juicy steak in a fancy restaurant, I hope that you will take a moment to pause and be grateful to the person, or persons, that had to die, due to claim denials for treatment so that you could enjoy that oh so good and savory steak!
With private equity forms getting so involved in Medicare and Medicaid now, I envision someday a person having a heart attack, the ambulance has a credit card reader that the patient must first swipe to be taken to the hospital’s emergency room. Then, the emergency room will have a credit card reader, which the patient will need to swipe their credit card to have the defibrillator used on them.
Get my point?!
Some of you posting are thinking like finance or accounting people. Which in some places and instances is fine.
But we are talking Medicare and Medicaid here. These are and have always intended to be institutions setup as sort of “charity” way of giving back and protecting our most vulnerable of society. Some of the elderly and disabled snd poor had served in wars, owned businesses, gave to charities in their prosperous years.
And now you want to deny their health claims to save their lives or in ither ways profit off them to make a buck.
Shame in you!
If you want to make a profit, FINE. But do it off someone else’s dime and not the government and NOT off tax payer’s money!
@fm Hardly what I would call a ringing endorsement.
If you think about it, Humana is just a mere vendor for the government when it comes to administrating Medicare and Medicaid.
The government wanted them to reduce costs by curbing Fraud, Waste, and Abuse, NOT denying legitimate health claims, simply because they ate into profits.
So, what if some day the government decides to use private corporations for say city parks or the police department or fire department. And those same corporations are heavily backed by large banking firms, which demand profits and constant cuts?
You would be charged for parking at a city and $2 to use the drinking fountain or restroom. $5 for your child to olay on the swings. Police department or Fire department may only respond to wealthier neighborhoods. I could go on.
As I said earlier, Medicare and Medicaid were created a long time ago by the government to help the elderly, disabled, and indigent. It wS never intended to be a profiteering raquet for large corporations or large banking firms.
Just take a moment to look at the top institutional stakeholders who own the most shares in Humana and compare it to all the other large corporations. They already own us and everyone else. Blackwood, vanguard and state street.
Need to get the banker’s filthy hands out of anything related to Medicare and Medicaid.
Those government created programs were created to save lives and help people, particularly help the elderly, disabled, and indigent. Not to grease the filthy hands of greedy bankers.
@ay Agree. Probably one of the very worst decisions Humana has ever made. Oh, might be a good financial decision. But as to the reputation of the company and as to the best interests of its members and employees, it was a terrible idea. This single move has undermined what the original founders intended for this company.
Gross
Humana has agreed to form a new joint venture with BlackRock (via HPS Investment Partners) to acquire a $2.8 billion equity stake in nearly 150 CenterWell Senior Primary Care clinics.
Key Deal Details
• Acquisition Value: BlackRock is buying out the $2.8 billion stake previously held by private equity firm Welsh, Carson, Anderson & Stowe (WCAS).
• Ownership Structure: BlackRock will hold a majority stake in the new joint venture, while CenterWell (a subsidiary of Humana) will retain a minority stake.
• Clinic Management: CenterWell will continue to manage and operate all the clinics with no changes to patient care.
• Timeline: The transaction is expected to close by the end of 2026.
Shift from Previous Agreement (WCAS)
• Removal of Put Option: The old agreement with WCAS included a put option that could force Humana to buy back the stake. That clause has been removed for BlackRock, lowering balance sheet liabilities and reducing Humana's cost of capital.
• Future Options: CenterWell will gain the option to purchase clinics from the joint venture starting in 2028.
• Exit Terms: If CenterWell has not acquired all the clinics by the end of 2033, BlackRock can exit by selling the remaining clinics, though CenterWell retains the right to submit the first offer.