Humana’s Big Plans To Optimize CenterWell Home Health, Drive Value-Based Care

To bolster value-based care, Humana Inc. (NYSE: HUM) is launching a comprehensive initiative to reimagine its home health operations.

Humana’s home health engine — CenterWell Home Health — continues to be one of its strongest performing arms. In its fee-for-service business, year-to-date episodic admissions are up 8.6%, while total admissions are up 5.1%.

However, as Humana delves deeper into more value-based arrangements, the company is making changes to its operations as a way to be more efficient amid reimbursement pressures.


“These efforts will be deployed across our more than 350 branches, and will include automation, consolidation, technology and AI solutions,” Humana CEO Bruce Broussard said during the company’s third-quarter earnings call Wednesday. “This will minimize administrative caps while improving clinician productivity — including optimizing their schedule. We believe these initiatives, some of which require incremental investment, will ultimately streamline our operations and lead to increased clinician productivity and satisfaction.”

Some of these initiatives are already underway at CenterWell Home Health.

The provider recently introduced an AI-enabled digital wound management solution, which allows clinicians to capture vital wound details with a simple picture.


So far, CenterWell has reported an 18% improvement in visit efficiency using the digital wound management tool.

“This has been instrumental in clinical decision-making, contributing to an accelerated wound healing time by 35%,” Brousard said.

Humana’s CenterWell brand includes home health care, primary care and pharmacy services. Its home health segment has 352 locations, over 9,000 clinicians and serves more than 350,000 patients annually.

The integration of CenterWell’s assets continues to be a key focus for Humana in the near-term future.

A growth in CenterWell’s patient population was one of a handful of bright spots for Humana in the third quarter.

CenterWell added over 17,000 patients in its de novo centers since the start of the year – 89% growth – plus an additional 15,000 patients in its wholly owned centers, a 9% increase year to date.

“We now anticipate full-year patient annual growth of approximately 34,000 to 36,000 as compared to our original estimate of 20,000 to 25,000 patients, more than doubling the patient growth achieved in 2022,” Humana CFO Susan Diamond said. “We are working diligently to identify clinical and operating efficiencies to offset industry headwinds, including rate reductions, declining original Medicare admissions due to increasing MA penetration and ongoing labor pressures.”

Medicare Advantage

Humana continues to show strong growth in its individual Medicare Advantage business as well.

The insurer expects to add about 850,000 members in 2023, a 19% growth rate year over year.

“In our group Medicare Advantage business, we expect membership growth of approximately 45,000 in 2024, driven by small and midsized account wins, and remain committed to disciplined pricing and a competitive group Medicare Advantage market,” Diamond said.

Humana reported revenue of $26.4 billion, up from $22.8 billion over the same time period last year. Revenue for CenterWell was reported at $4.66 billion, up from $4.27 billion a year ago.

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