Humana Inc., a Kentucky headquartered health insurance company, is apparently in the middle of serious discussions with two major private equity companies with the ultimate intention of acquiring a pivotal healthcare services company – Kindred Healthcare Inc., based in Kentucky. The proposed deal, which is speculated to value Kindred at USD 4 billion, including debt, is among a series of deals that healthcare revenue cycle management market has witnessed in recent times.
For the record, Welsh, Carson, Anderson & Stowe LP, TPG, and Humana would collaboratively run Kindred’s home & hospice-care business. Concurrently, the two private-equity firms that Humana is currently in talks with, are expected to take the lead and manage Kindred’s facility operations – inclusive of rehabilitation centers and acute-care hospitals. Insurance experts declare the proposed deal to increase the demand for health insurance and medical coding for bill reimbursements, which would consequently have a positive impact on the regional healthcare revenue cycle management industry.
Speaking of Humana, that seems to have depicted quite an appreciable proactiveness in healthcare revenue cycle management market since the onset of 2017, reports cite that the company had some time earlier, been forced to terminate a 37-billion-dollar agreement with its arch rival, Aetna Inc., owing to antitrust opposition. Last month, the company also released a statement declaring that it would need to eliminate 5.7% of its workforce in order to curtail costs in the health insurance industry. The changing trends in the medical insurance arena, as per industry analysts, is certain to have a profound impact on healthcare revenue cycle management market.
The proposed agreement between Humana and Kindred has been speculated to value the latter at a price of USD 9 per share. The company’s shares however, closed at USD 8.60 as on Dec 15, 2017. Experts claim that the official announcement about the deal’s finalization may be declared soon, though there are massive chances that the deal may still fail to materialize.