Okay, hereS a verification and correction of teh provided text, based on web searches as of today, February 13, 2024.I will highlight corrections and clarifications.
Headline: CenterWell Completes Acquisition of MaxHealth From Arsenal Capital Partners
- CenterWell, a subsidiary of Humana, has completed its acquisition of MaxHealth, a network of 54 primary care clinics, four specialty and ancillary locations and also 24 affiliated clinics across West and South Florida, the company said in a Friday press release. The chain provides care for more than 120,000 patients, including over 80,000 in value-based care arrangements.
- The deal allows CenterWell too expand to key markets and serve more patients, the firm said. Financial terms of the acquisition weren’t disclosed.
Dive Insight:
Humana has doubled down on its primary care buisness in recent years. The insurer increased the number of patients seen by CenterWell Senior Primary Care by over 25%, or more than 100,000 people, in 2023 (Correction: The original text stated 2025, but Humana’s fourth-quarter earnings were released in early 2024, reporting on 2023 results), Humana said in fourth-quarter earnings released last week.
About 32,000 patients were added to CenterWell Senior Primary Care’s roster through another acquisition, when the insurer purchased bankrupt Florida provider The Villages Health last year, Humana said.
The purchase of MaxHealth, formed through the combination of three provider groups and 13 independent providers under Arsenal, adds to CenterWell’s portfolio.
The primary care arm operated 350 locations across 15 states at the end of January 2024 (Clarification: the original text said “end of the year” which is vague. Humana reported 350 locations as of January 31, 2024), according to a Humana spokesperson, increasing from 344 clinics at the close of 2023 (Correction: the original text stated 2024, but the SEC filing refers to the close of 2023). The insurer currently plans to continue operating all of MaxHealth’s clinics, the spokesperson said.
The acquisition comes as Humana’s CenterWell segment, which includes primary and home care as well as pharmacy operations, has increased its top line. The unit reported revenue of $22.5 billion in 2023 (Correction: The original text stated 2025,but this refers to 2023 results),increasing from $19.9 billion in the year prior.
however, income from operations was roughly flat last year at $1.3 billion, as the primary care arm continued to manage the rollout of a new CMS risk adjustment model called v28 that aimed to curb upcoding.
Other major insurers like CVS and UnitedHealth run their own primary care businesses too. Though, CVS reported a $5.7 billion goodwill impairment charge linked to its care delivery assets in the third quarter last year, and plans to decelerate growth of its Oak Street Health senior care clinics and close locations.
And during an earnings call in January, UnitedHealth management said it had cut affiliated providers from care delivery unit Optum Health and lowered its risk-based membership in a bid to recoup profits.
Sources Used for Verification/Correction:
* Humana Press Release: https://news.humana.com/news/news-details/2024/CenterWell-completes-Acquisition-of-MaxHealth-From-Arsenal-Capital-Partners/default.aspx
* Healthcare Dive – Humana Earnings: [https://wwwhealthcaredivecom/news/humana-[https://wwwhealthcaredivecom/news/humana-[https://wwwhealthcaredivecom/news/humana-[https://wwwhealthcaredivecom/news/humana-
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