Humana announced that it has finalized an agreement to purchase the remainder of the Kindred at Home service as part of its home healthcare extension.
Humana’s president and chief executive officer, Bruce Broussard, said, “We continue to invest in assets that allow Humana to better manage the holistic needs of our members and patients by expanding care in the home, including primary care, telehealth, and emergency room care, while also addressing social determinants of health.”
The purchase price is expected to be around $8.1 billion. The home healthcare company employs 43,000 people and serves more than 550,000 patients in 40 states. Geographically, almost two-thirds of Humana’s individual Medicare Advantage plan membership (65%) has access to the Kindred at Home program.
Humana expects the transaction to close in the third quarter of 2021 if it receives the requisite state and federal approvals. The payer expects the agreement to have little effect on earnings in 2021, but it could have an impact on financial stability in 2022.
Kindred at Home’s Home Healthcare Program
Humana has been collaborating with Kindred at Home to enhance its adverse event management capabilities and develop a data analytics framework to help the two companies coordinate treatment.
Susan Diamond will lead the payer’s Home Solutions division, which will include Kindred at Home’s home healthcare program.
“Our work with Kindred at Home taught us more about advanced clinical models, demonstrated that we can execute on needed innovation, demonstrated that we can drive penetration, and gave us confidence that we can support a higher acuity patient by leveraging the other home-based assets and capabilities we’ve assembled,” Diamond said.
“Even as their penetration of Humana episodes increased from 8% to 19% in markets with regional overlap, Kindred at Home continues to show superior patient outcomes, including decreased hospitalizations, readmissions, and ER utilization.”
COVID-19 Impact on the Medicare
The coronavirus pandemic revealed the prevailing strengths and lags of home healthcare systems, especially in Medicare.
The need for improved home healthcare strategies and coverage became apparent as the healthcare sector moved rapidly away from in-person treatment and toward home healthcare and remote patient monitoring.
As a result, payers such as Humana are expected to concentrate their efforts in 2021 on strengthening their Medicare Advantage home healthcare facilities.