February 10, 2020
Humana Inc. has partnered with private equity firm Welsh, Carson, Anderson & Stowe (WCAS) to develop and operate primary care centers focused on seniors. The centers will be operated and branded under Humana’s wholly-owned, primary care subsidiary, Partners in Primary Care.
New York-based WCAS made an initial commitment of $600 million to the JV and will have majority ownership in the new company. Humana, meanwhile, will own a small minority stake.
Partners in Primary Care currently operates 47 care centers in six states with an emphasis on patients covered by Medicare Advantage health plans. The deal with WCAS will allow Partners in Primary Care to more than double their footprint over the next three years. The new centers will be payor-agnostic, and focus on patients covered by Medicare.
“There is a significant unmet need for value-based, senior-focused primary care in the U.S.,” said David Caluori, general partner of WCAS, adding that the private equity firm has a 40-year history of successfully building world-class healthcare companies.
Partners in Primary Care proactively addresses chronic conditions, wellness and social determinants of health, according to Renee Buckingham, segment president of Humana’s Care Delivery Organization. The company provides a “differentiated offering and experience to seniors, often in areas where access to primary care is limited.”
Humana’s deal with WCAS includes a management fee and performance-based incentives for Partners in Primary Care for all centers in the JV. Additionally, Partners in Primary Care has the option of acquiring WCAS’s interest in the JV in stages over the next five to 10 years.
For questions, comments or concerns, please contact Jennifer Duell Popovec