A massive player in the long term care industry, Kindred Healthcare, has recently approved a merger with Humana, a large health insurance provider. Kindred and Humana will merge for an approximate $800 million sale of 40% of Kindred’s home health division to Humana. Concurrently, two private equity firms, TPG Capital and Welsh, Carson, Anderson & Stowe, and in negotiations to purchase Kindred entirely for $4.1 billion.
Kindred’s stockholders recently approved the merger with Humana, which makes the underlying sale of Kindred more enticing. Humana and its newly acquired Kindred division are hoping to develop closer ties to nationwide retailer giant, Wal-Mart.
Corporatization of Long Term Care
What Does the Kindred Humana Merger Mean?
Kindred wears many hats in the long term care industry. Kindred Healthcare owns and operates skilled nursing facilities, assisted living facilities, long term care hospitals, home health aides, hospice services and short term rehabilitation centers.
Humana is one of the nation’s largest insurers. Although a private company, Humana has a large Medicare division, insuring many older Americans who enter long term care facilities.
Kindred & Humana’s Home Health Aide Interest
40,000 Kindred private duty aides care for more than 100,000 patients daily. Kindred at Home, the home health aide component of Kindred Healthcare, makes about $2.5 billion in revenue each year. Humana, as one of America’s largest health insurers with a focus on Medicare patients, wants to keep its insureds out of hospitals and nursing homes. Chronically ill, in-patient treatment is a costly expense to insurers like Humana. As a result, the company has acquired Kindred at Home because it “is seen as helping Humana form closer ties with a provider of home care and related services predominantly used by the elderly.”
Humana CEO, Bruce Broussard, was quoted as saying that he was excited about the merger with Kindred, as it
“provides to advance our vision for integrated care delivery, as we continue to deliver our Humana At Home capabilities while building a transformative platform for the future.”
Our Experience with Kindred
As nursing home abuse attorneys, we have handled numerous cases against Kindred. We do not think that this merger will impact the way that Kindred adjusts and handles its claims. In fact, the litigation department at Kindred is remaining in-house.
More questions on the care provided by Kindred? Contact our elder abuse attorneys by calling or emailing us today. The consultation is always free.« Previous PostNext Post »