Humana Inc. (NYSE: HUM) is restructuring.
It will make its CenterWell arm, which includes its home health and primary care capabilities, one of two business units. The goal is to simplify the company’s organization and strategy moving forward.
Formerly known as Kindred at Home, CenterWell Home Health is the rebranded home health organization of the Louisville, Kentucky-based Humana. On Wednesday, Humana CEO Bruce Broussard said that the overall CenterWell brand will become one of two units in the company, with the other being Insurance Services.
“Insurance Services will be made up of the businesses that currently sit in the retail group and specialty segments, while CenterWell will represent the current health care service segment,” Broussard said during a Wednesday conference call to discuss second quarter financial results. “We believe this simpler structure will create greater collaboration across our insurance and CenterWell businesses, and will accelerate work that is underway to centralize and integrate operations within the organization.”
The move, which will be effective by 2023, also comes with an opening for a president of insurance and enterprise services. The focus of the new role will be to help simplify Humana’s structure and make the company more agile, while aiming to improve patient outcomes.
Humana’s home-based care strategy continues to be a priority as well.
Broussard touted its partnership with private equity firm Welsh, Carson, Anderson & Stowe (WCAS) and reiterated that $1.2 billion will be deployed to develop up to 100 new CenterWell senior primary care clinics between 2023 and 2025.
Humana has also been busy in expanding its value-based model, increasing the number of Medicare Advantage members covered by those models by 22%, or 331,000 members.
“These actions are building significant momentum within the organization and position us for continued strong growth and leadership in the delivery of integrated, value-based care,” Broussard said.
Humana’s net income was up 18%, or $696 million, compared to the $588 million in the second quarter of 2021.
Home health episodic admissions were up 3.1% year over year, while total admissions are up 4.9%, which were consistent with expectations, Humana CFO Susan Diamond said.
“We do see some great opportunities today, both at CenterWell Primary Care and in the home,” Broussard said. “The ability to integrate and also to expand beyond the Medicare side of the business is really at the heart of what you see, us more formally creating the CenterWell service side, while on the insurance side continuing to leverage the efficiencies across the various different insurance platforms.”