Humana’s CenterWell Senior Primary Care launched a second joint venture with Welsh, Carson, Anderson, and Stowe (WCAS) that will develop and operate value-based primary care clinics for Medicare beneficiaries. This joint venture expands upon an existing collaboration, valued at up to $800 million, that is opening 67 clinics by early 2023. The new joint venture, valued at $1.2 billion, will develop approximately 100 new CenterWell Senior Primary Care clinics between 2023 and 2025.

Development of additional de novo clinics will reinforce the Humana Primary Care Organization’s (PCO) position as the largest senior-focused primary care provider in the nation.

WCAS, a health care and technology-focused investment firm, will have majority ownership of the JV, while Humana will own a minority stake. All de novo clinics developed through the Humana-WCAS joint ventures will be managed and operated under Humana’s CenterWell Senior Primary Care brand.

CenterWell Senior Primary Care is actively scaling its platform through a combination of de novo expansion and inorganic growth. As of March 31, 2022, Humana’s PCO operates a total of 214 senior-focused primary care clinics, including 37 under the current joint venture with WCAS and 177 other wholly owned centers.

Together, these 214 clinics – operating under the CenterWell Senior Primary Care and Conviva Care Solutions brands – serve approximately 180,000 patients in Medicare value-based arrangements, while also supporting 58,000 patients under Independent Practice Association (IPA) arrangements through Conviva Care Solutions. By the end of 2022, Humana expects to serve Medicare beneficiaries in approximately 250 CenterWell and Conviva clinics, and intends to add 30 to 50 additional CenterWell clinics per year through 2025.

Under the new joint venture agreement, CenterWell Senior Primary Care will receive a management fee, including performance-based incentives, for the management of all joint venture clinics. In addition, the agreement includes a series of put and call options through which Humana may acquire WCAS’s interest in the joint venture beginning in 2028 or five years after the opening of each cohort of clinics, and through which WCAS may require Humana to purchase its interest in the joint venture beginning in 2030 or seven years after the opening of each cohort of clinics.

This was reported by Humana and WCAS on May 16, 2022, at https://www.businesswire.com/news/home/20220516005339/en (accessed May 17, 2022).

Contact information: Mark Taylor, Corporate Communications, Humana, Post Office Box 14601, Lexington, Kentucky 40512–4601; Email: MTaylor108@humana.com; Website: https://www.humana.com/