CenterWell Home Health – a subsidiary of Humana Inc. (NYSE: HUM) – has agreed to acquire Trilogy Home Health.
Based in West Palm Beach, Trilogy has 11 locations across the state of Florida. The company provides home health care, personal care and care coordination services.
Trilogy’s employees were notified about the deal on Monday, a source told Home Health Care News.
On its end, CenterWell provides home health services to more than 350,000 patients per year via its 350-plus locations across 38 states. It rebanded officially to CenterWell Home Health – after formerly being known as Kindred at Home – last September.
Humana divested the majority of CenterWell Home Health’s personal care and hospice footprint to Clayton, Dubilier & Rice (CD&R) last year. Those divested assets turned into Gentiva.
CenterWell has a home health arm and a primary care arm. Those two areas are Humana’s focus on the health care services side, and it believes both are key levers in the quest to become more entrenched in value-based care.
The Trilogy acquisition will expand CenterWell Home Health’s density in Florida, a state it already has significant density in.
“While we have strategies in place to continue to take share in fee-for-service Medicare, we do acknowledge it is a shrinking market with the increasing penetration of Medicare Advantage,” Humana CFO Susan Diamond said recently, in reference to home health care. “Accordingly, our projected admission growth for 2023 reflects a slight decline in fee-for-service Medicare admissions year over year, more than offset by strong growth in Medicare Advantage.”
HHCN reached out to Humana for comment but had not heard back by the time of publishing.
Home health M&A trends
There were three total home health transactions in the first quarter of 2023, according to the M&A firm Mertz Taggart. That is a historically low total.
The factors contributing to that include: interest rates, payment rate uncertainty, a lack of quality targets, among many others. In April, however, there have been a few notable home health transactions already.
The CenterWell-Trilogy deal represents one of those. LHC Group – now officially a part of Optum – acquired the Delaware-based Summit Home Care last week. Elara Caring also announced in early April that it had entered an agreement to acquire Assisted Daily Living.