Humana Becomes the Country’s Largest Provider of Health Care At Home

Stephen Tweed | July 11, 2018 | News and Views, Research & Trends
By Stephen Tweed   Louisville based Humana has just closed on a series of acquisitions that makes it the country's largest provider of health care at home, and the second largest Medicare Advantage insurance plan. On July 2, 2018, Humana announced that it had closed on the purchase of Kindred At Home, the home health and…

By Stephen Tweed  

Louisville based Humana has just closed on a series of acquisitions that makes it the country’s largest provider of health care at home, and the second largest Medicare Advantage insurance plan.

On July 2, 2018, Humana announced that it had closed on the purchase of Kindred At Home, the home health and hospice arm of Kindred Health Care.  This deal was done in partnership with two private equity firms.  Humana will own 40% of Kindred at Home, which is the largest Medicare Certified Home Health Agency, with San Francisco-based TPG Capital and New York City-based Welsh, Carson, Anderson & Stowe holding the remaining stake. Kindred At Home also has a growing in-home personal care business.  

Humana also announced that is will purchase Curo Health Services, a Mooresville, NC based provider of hospice care. When merged with Kindred At Home’s hospice services, this will create the country’s largest hospice provider.

This series of announcements reinforces three significant trends in the home care industry that we have been monitoring this spring and summer:

  • The entry of private equity and venture capital firms into the home care space.
  • The consolidation of in-home care
  • The exploration of in-home care as part of Medicare Advantage insurance plans.
What Does This Mean for You?

As a C-suite leader in home care, these trends have significant implications for you and your company.  Here are three things to consider:

  • There is increasing interest in health care at home by private equity firms. I had a conversation today with a firm that is asking for help in identifying owners who might be interested in a capital partner to grow their business.  We’ll see more and more private equity and venture capital available for growth.
  • Consolidation is continuing, so you can expect more competition from larger home care companies that are growing through acquisition.
  • Third party payers are exploring the value of in-home personal care in keeping patients out of hospitals and long term care.  This has the potential to bring long term revenue gains to the personal home care sector.  This also means that owners will need to make strategic decisions about moving away from private pay to accepting payment from third parties, whether that is Medicaid or Medicare Advantage plans.

Stay tuned to our weekly Trendicators, and our monthly Home Care CEO Report, for more information on these and other trends shaping the future of home care in America.

Stephen Tweed
Stephen Tweed, CSP, began his journey as a business strategist in home health care in 1982. Today, Stephen is among the top thought leaders in Home Care strategy and management. He has worked with top 5% companies from across the US. He is a sought after speaker at from national and state association events.

Related Posts

Extraordinary Transformation: A blueprint for leaders who want to Transform their Organization

June 5, 2024
By Stephen Tweed As a leader in Home Care, are you working on transforming your organization? Are you looking for strategies and insights to grow your business and get ready for the future? I've just finished reading an amazing book by my friend and professional speaking colleague, Dr. Nido Qubein. "Extraordinary Transformation: An Entrepreneurial Blueprint…

Stephen Tweed’s Podcast and Webinar Appearances

May 30, 2024
As a significant Thought Leader in the Home Care industry, Stephen Tweed is frequently invited to be a guest on industry podcasts and webinars. Here are links to some of Stephen's recent appearances. June 2024 - Lead Up Podcast with Mike Harbour - "Legacy Leadership" Stephen Tweed was interviewed by Mike Harbour for the Podcast,…

The Forces and Trends Shaping the Future of Home Care.

May 14, 2024
By Stephen Tweed What will the Home Care Industry look like in five years? Over the past two decades I've been actively engaged in the Home Care Industry, and monitoring the Forces and Trends that are shaping the future of our industry. While much of the growth of Home Care is driven my the entrepreneurial…