A transaction between Humana and Kindred Healthcare, a Louisville, Ky.-based acute care provider, will help Humana better control its members' chronic diseases, Humana CEO Bruce Broussard said, according to Insider Louisville.
Mr. Broussard told attendees at the annual J.P. Morgan Healthcare Conference Tuesday most of Humana's customers "have severe chronic conditions and the more we can engage with them, keep them out of the hospital systems, the institutions, staying at home and preventing the disease from progressing, the more impact that we have on both them … from a health point of view, cost point of view and societal point of view."
Following completion of the $4.1 billion acquisition agreement, Kindred's home health, hospice and community care businesses will operate as a separate standalone company. Humana will retain a 40 percent stake in the home health business, with Welsh, Carson, Anderson & Stowe and TPG maintaining a 60 percent share in the company.
By managing its members' chronic illnesses in the home setting, Humana will improve its bottom line, Mr. Broussard told investors. While caring for a member with managed diabetes cost the insurer roughly $900 a month, caring for a member with a severe case costs Humana more than $4,000 a month, Insider Louisville reports.