In a multibillion-dollar deal, Humana Inc. has announced it plans to purchase the rest of a major home health and hospice business based out of Louisville.
Humana, which was also founded in Louisville and operates out of its downtown headquarters, will spend approximately $5.7 billion through on-hand cash and debt financing to buy the rest of Kindred at Home, which is valued at just over $8 billion. The deal is expected to close by the third quarter of 2021, Humana said Tuesday in a release.
The acquisition, Humana President and CEO Bruce Broussard said, will help the companies to more closely align incentives to focus on improving patient outcomes and on reducing the total cost of care.
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Humana will pay $5.7 billion to buy the remaining shares of Kindred at Home, bringing its total investment in the nation s largest home care and hospice provider to $8.1 billion.
While the proposed acquisition covers the totality of Kindred s business, Humana eventually plans to integrate just the home health side into its Home Solutions business line, with the aim that it will eventually provide care to those insured outside Humana, and be rebranded to CenterWell Home Health, taking on the name of Humana s recently-launched healthcare services company.
The rest of Kindred s hospice and community care services could eventually join to create a separate public company that Humana would have a minority stake in, and which would be led by current Kindred CEO David Causby.
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