We’re feeling a bit buffeted by multiple aftershocks here. Humana’s chess pieces just keep sliding around the board. First, the insurer snapped up full ownership of Kindred at Home, the biggest home health care organization in the country. As we flagged in an earlier post about this acquisition, we see all kinds of implications that the insurer’s expanding integration and market power may play out as negatives for providers and patients.
We assumed that Humana’s Kindred purchase was just another bottom-line booster. And while, yes, we were on the money (pause, wait for laugh) about Humana profiting from this acquisition, our prediction was a shade off regarding the finer points. It turns out that the major profit driver here was Humana’s speedy turnaround in spinning off Kindred’s hospice and personal care services businesses in order to “capitalize on high market valuations.” So, while the insurer will hang onto Kindred’s home health arm under Humana’s CenterWell brand, they are about to hit a sizable jackpot by offloading the rest of the company.
Speaking of money, another boost to Humana’s cushy-looking bottom line is the significant cost savings they surely anticipate since skilled nursing care hours (less expensive) will likely lead to reduced hospitalizations (more expensive) as care moves into the home. So, long story short, everything’s coming up Humana. But how will the growing company’s big payday benefit patients? Will they at all? At the lightning speed that Humana’s moving, we may not have to wait too long to find out.
