Humana Inc. (NYSE: HUM) announced Thursday that it has completed its divestiture of Kindred at Home’s hospice and personal care divisions.
Clayton, Dubilier & Rice (CD&R) has acquired a majority interest in those assets, or 60%. Now that the deal is closed, the hospice and personal care assets will be restructured into a standalone company.
The deal was first announced in April.
“Humana will continue to support the long-term success of these operations through our minority ownership and ongoing strategic partnership,” Humana CFO Susan Diamond said in a press release. “Hospice and palliative services play an important role in the full continuum of care, and we are confident that this new standalone company will continue to provide patients and their families with the resources and high-quality care they need.”
Moving forward, the deal allows Humana to benefit from the capital that it received for the assets – $2.8 billion – and the ongoing minority stake it has in the business.
Diamond said previously that moving forward, the company felt comfortable working with personal care and hospice on a partnership-level basis. Kindred at Home is now CenterWell Home Health under the Humana umbrella.
“While palliative and hospice services are important components in the continuum of care that Humana offers patients, we are confident that we can deliver desired patient outcomes and improved customer experiences through partnership models rather than fully owning Kindred at Home Hospice,” she said in April.
Before making the eventual sale to CD&R, Humana explored a broad range of alternatives before landing on that option.
David Causby, the president and CEO of Kindred at Home, will be taking the helm of the new standalone company. That new company is soon to be “Gentiva,” according to the release.
Gentiva Health Services was the name of a home-based care company that was acquired by Kindred Healthcare in 2015 for $1.8 billion, which created Kindred at Home — ultimately the largest home health provider in the country. Kindred at Home, of course, was then later acquired by Humana.
Meanwhile, Andrew Agwunobi was tabbed in January as the new president of Humana’s home business.
“We are pleased to complete this transaction with Humana and CD&R,” Causby said. “Our dedicated hospice and personal care company is focused on improving access, equity and quality of care for patients while remaining an employer of choice for health care professionals.”
On its end, CDR’s portfolio includes agilon health (NYSE: AGL), a value-based primary care company; Vera Whole Health, a value-based population health care provider; and Healogics, a wound care company.
The Gentiva addition will help round out CDR’s portfolio, allowing it to provide care more fully across the continuum.
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