Humana Inc. (NYSE: HUM) announced Monday that it has entered into an agreement to acquire onehome, a home-focused post-acute care company.
The acquisition brings Humana, based in Louisville, Kentucky, closer to its goal of becoming one of the leading home care providers in the country, its executives believe.
Officially known as “One HomeCare Solutions”, onehome, based in Miramar, Florida, was previously supported by WayPoint Capital Partners. The company is a mix of a convener and a provider and operates on a full risk model.
Over the past three years, Humana has strategically built a diverse home care network that encompasses a wide range of skills. In addition to onehome, for example, Humana recently announced that it is the Remaining share in Kindred at Home.
Humana originally acquired 40% of Kindred at Home with two private equity firms in 2018. In April, Humana announced that it would acquire the remaining 60% for a reported company value of $ 8.1 billion, including Humana’s existing equity value of $ 2.4 billion.
“We have said in the past that we believe that many members want home services and that we see the home as a more affordable environment,” Kirk Allen, senior vice president of home care at Humana, told Home Health Care News . “We’re also seeing technology moving in a direction that will better help people deliver their services at home. I think we made it clear that this is a big part of our strategy for the future. “
Financial terms of the one-home deal were not disclosed.
Slightly under the radar, onehome moved closer to the national spotlight when it was acquired by WayPoint in late 2018. Now it’s big enough to be attractive to a huge organization like Humana.
Beyond Kindred at Home, Humana’s skills in home care include partnerships with General Practitioner Care DispatchHealth and the Senior society dad. It also did a $ 100 million investment in primary care outpatient provider Heal last year.
“We continue to invest in assets that enable Humana to better meet the holistic needs of our members and patients by expanding home care, including primary care, telemedicine and emergency rooms, while addressing social determinants of health,” said CEO Bruce Broussard in April. “We have learned a lot about home health and recognize the tremendous value we can add to members and patients by incorporating that benefit into our holistic approach to treatment.”
Humana’s final plan is to integrate Kindred at Home and other acquired companies such as onehome into its “CenterWell,” non-paying healthcare brand, which will also include “CenterWell Home Health”.
“[This] complements our recent announcement to fully acquire and integrate Kindred at Home, and brings together additional capabilities that will enable Humana to deliver value-based home health care nationally, ”said Susan Diamond, President of Humana’s Home and Interim CFO. in a statement. “By combining onehome’s values-based approach with Kindred’s home health services and Humana’s analytical skills and clinical expertise, we believe we can create a transformative, values-based offering to engage more people, including non-Humana plan members, in the to supply the whole country. “
Branding is still up in the air for onehome, but it’s likely that it will also fall under the CenterWell umbrella at some point.
Once the acquisition is complete, Humana and onehome will work to integrate and expand onehome’s network, said Humana.
Become an acquisition target
Under the direction of Dr. Joseph Mayer has grown steadily onehome since it was founded in 2013.
“They really went through an iterative process,” said Allen. “And what we particularly liked about the model was the patient / member experience it created by delivering in-home health infusions and DME services in a truly coordinated manner.”
Onehome’s model addresses a number of post-acute needs. The services it offers to meet this need include IV delivery, nursing, occupational therapy, physical therapy, and long-life medical devices (DME), among others.
In April, onehome announced that there was a significant expansion with the help of Medicare Advantage (MA) insurer Devoted Health. In particular, this move would result in onehome coordinating and providing home health services in Arizona, Ohio, and Texas.
The company offers home care through its vertically integrated portfolio of providers. But its uniqueness comes from its hybrid provider-convenience make-up.
From Humana’s point of view, that was an attractive quality.
“We like the idea that they really understand and have skills in dealing with risk-based contracts,” said Allen. “And they have some models in places like Florida that they worked under for several years to improve those skills. That was – in combination with the good results that you achieve through the really holistic provision of the services – very attractive for us. “
On the tour operator’s side, onehome cooperates with payers through full-risk capitation agreements for qualified home nursing, DME and home infusion services.
Simply put, onehome’s model goes well with what Humana is trying to do.
“At Humana, we are implementing a strategy to build a new value-based health model at home that will improve patient outcomes, increase patient and provider satisfaction, and deliver greater value to partners in the health plan,” said Diamond. “The acquisition of onehome is an essential part of this strategy.”
With the Kindred acquisition, Humana is taking over a network that includes locations in 40 states and around 43,000 caregivers. According to LexisNexis data, Kindred is the largest family doctor in the country.
Having a robust network of providers to supply is the first half of the battle. Coordinating that care with the right approach is the other half.
And onehome can help with that, said Allen.
“We provide more than 500,000 home health episodes annually,” he said. “You are thinking about the presence of Kindred and its skilled employees and how effectively they serve members and customers across that presence. And also the fact that this footprint overlaps [significantly] with Humana membership. Then you think of these possibilities of being able to provide services within the framework of risk-bearing agreements in this very clinically coordinated manner, and we see a great opportunity in the combination. “