Humana to acquire Enclara
Consonance Capital Partners, a health care investment firm, has agreed to sell Enclara Healthcare to Humana Inc. (NYSE: HUM).
The transaction includes the privately held pharmacy company’s subsidiaries Enclara Pharmacia, GuidantRx and Avanti Health Care Services. The deal is expected to close during the first six months of 2020.
For Louisville, Kentucky-based Humana, the acquisition gives the company the opportunity to harness Enclara’s current capabilities to supplement Humana’s existing care delivery system. Broadly, Enclara is a logical extension of the health insurer’s overarching strategy, according to Humana Senior Vice President Scott Greenwell.
Consonance first invested in Enclara in 2014. After that, it worked with the management team as Enclara made acquisitions of its own over the years.
The hospice pharmacy and benefit manager company Consonance serves over 450 hospice providers and 97,000 hospice patients per day. Humana indicated that the purchase would have little impact on 2020 earnings.
Since 2018, Humana has been expanding its operations to include ownership of various components of the health care continuum. Last year, the company acquired the large hospice and home health care providers Kindred at Home for $4.1 billion, then Curo Health Services for $1.4 billion.
Private equity firms TPG Capital and Welsh, Carson, Anderson & Stowe partnered with Humuna on the Kindred transaction.
At Your Service Home Care joins Honor
The San Francisco-based Honor is expanding. Dr. Lucy Andrews, the CEO of At Your Service Home Care, it now joining the Honor Care Network.
The news marks the second Honor expansion in the final months of 2019.
Andrews currently serves as the chair of the California Association for Health Services at Home.
By joining the Honor Care Network, Santa Rosa, California-based At Your Service Home Care will gain access to a shared pool of caregivers, management technology and an operations support team from Honor. In turn, Honor will receive an undisclosed share of the agency’s revenue.
“As a home care agency owner for nearly 20 years, I have personally experienced the evolution of our industry with increased regulations, new legislation and the continued workforce shortage,” Andrews said in a release. “This is the ‘new normal,’ which is putting increased pressure on agency owners struggling to keep up with the growing demand for elder care in their communities.”
In other recent Honor news, CNBC reported on Dec. 5 that SoftBank’s Vision Fund 2 was considering a $150 million investment in Honor, which has already raised roughly $115 million since it launched in 2014.
HealthPartners cuts jobs in Minnesota
HealthPartners is shutting down a home care service in St. Paul, Minnesota and 70 people are expected to lose their jobs, according to a report from the StarTribune.
The Bloomington, Minnesota-based health insurer and care system had cut jobs twice in the past two months before the St. Paul location took a hit. The communications manager said that the company does not expect to lay off anyone else this year.
The union that represents many of the workers laid off expressed dismay with the company’s decision, saying it was “an example of a health system putting their profit margin before people.”
The move could have been made to curb financial issues in the coming year, when the company expects there will be less federal reimbursements. HealthPartners had about $7 billion in revenue last year and employs close to 26,000 people.
M & M Home Care Expands in Michigan
M & M Home Care Inc. has acquired Hearts & Hands Home Health Care in order to expand its reach in southeastern Michigan.
The deal will allow the Livonia, Michigan-based company to serve six additional counties in the state and further its footing in the home care space. Hearts and Hands Home Health Care is a private duty company that offers a variety of services, from elder to special needs care.
*Editor’s note (Dec. 18, 2019): This story was updated to correct a factual error in an earlier version saying SoftBank invested $150 million in Honor. SoftBank has not confirmed investing in Honor; CNBC reported Dec. 5 that that group was considering such an investment.
HHCN also updated the language of the story to better reflect At Your Service Home Care’s relationship to Honor and the Honor Care Network.