Humana Inc. (NYSE: HUM) will proceed to develop its dwelling well being phase.
The corporate’s leaders and executives made that – and different plans – clear throughout the firm’s investor assembly Thursday.
“Our deal with sustained progress and operational effectivity has pushed robust year-over-year efficiency and a optimistic long-term outlook,” Andy Agwunobi, president of Humana’s dwelling options enterprise, stated throughout the name. “Over the previous yr, CenterWell Residence Well being has grown same-store whole admissions by 5%, considerably outpacing prime opponents who’ve seen flat to destructive progress over the identical time interval.”
CenterWell Home Health completed its rebranding process on Sept. 1.
An environment friendly gross sales crew, workforce retention and establishing key referral relationships on the state and regional ranges have been the explanations for that progress, Agwunobi stated. That’s why CenterWell has been capable of see such robust progress.
And whereas rising organically has labored nicely to date for Humana, M&A continues to be on the agenda.
“M&A is a crucial pathway to driving worthwhile progress and supporting our strategic priorities, comparable to enhancing nurse capability and scaling our value-based mannequin,” Agwunobi stated. “We’ll proceed to actively monitor the marketplace for accretive acquisition and three way partnership alternatives and we anticipate them to grow to be more and more accessible within the near- to mid-term.”
Labor challenges have slowed the general progress of the house well being trade, however Agwunobi has confidence that Humana can benefit from a fragmented market.
“The trade can also be extremely fragmented with the highest 20 dwelling well being gamers having lower than a 3rd of the whole market share,” he stated. “We imagine this affords a chance for additional progress by mergers and acquisition. With roughly 6% market share, CenterWell Residence Well being is the market chief on this fragmented trade, and is nicely positioned to proceed to be a pacesetter in progress of its core enterprise going ahead.”
Humana continues to see optimistic momentum with Medicare Benefit (MA) as nicely.
The corporate see the worth proposition of MA persevering with to enhance, Alan Wheatley, president of Humana’s retail phase, additionally stated.
“Medicare Benefit drives improved well being outcomes and members in MA are more healthy than members that be part of unique Medicare,” Wheatley stated. “MA well being plans and the well being care suppliers that ship care to our members prioritize preventive care. Working collectively, we’re altering the character of the best way well being care is delivered on this nation and driving considerably improved well being outcomes for our clients.”
The house well being enterprise additionally anchors Humana’s presence as a market chief in dwelling well being, Humana President and CEO Bruce Broussard stated.
“The complicated sufferers inside our dwelling well being enterprise supplies the chance for fee and care mannequin innovation by progressing to value-based fashions,” Broussard stated. “We’re assured care at dwelling might be an more and more related and necessary facet of care going ahead and our property place us with optionality and new progress vectors as that future unfolds.”
