Humana nears $1b acquisition of Florida primary care operator

Humana Inc., a US health insurance provider, is in advanced talks to acquire MaxHealth, a Florida-based operator of primary care clinics, in a deal valuing the company at approximately $1 billion (€930 million/£790 million). An agreement could be announced within days, though a final deal has not been reached and discussions could still end without a transaction.

Bloomberg reported that MaxHealth focuses on Medicare, Medicare Advantage and managed Medicaid patients in Central and South Florida. The company was acquired in 2021 by Best Value Healthcare LLC, a company backed by private equity firm Arsenal Capital Partners, though terms of that transaction were not disclosed.

Humana Chief Executive Officer Jim Rechtin said on the company's earnings call this week that it hoped to announce a primary care acquisition soon. The acquisition would expand Humana's CenterWell division, which employs doctors caring for patients on Medicare plans.

Humana focuses on private Medicare Advantage health plans for seniors, a business that has struggled with rising care expenses and tighter reimbursements from government programmes. In recent years, the company has expanded its footprint in primary care and other services through acquisitions and organic growth.

The potential transaction comes as other insurance companies that expanded into primary care have pulled back. CVS Health Corp. took a large impairment on its Oak Street Health primary care acquisition, whilst UnitedHealth Group Inc. is divesting or closing hundreds of its Optum Health care sites.

Representatives for MaxHealth and Arsenal Capital did not immediately respond to requests for comment, whilst a Humana spokesperson declined to comment. The acquisition would represent continued consolidation in the US primary care market despite challenges facing vertically integrated insurer-provider models.

View the full report for details on how the acquisition fits into Humana's broader care delivery strategy and Medicare Advantage positioning.