Humana and private equity firm Welsh, Carson, Anderson & Stowe (WCAS) have entered into a joint venture that they say will expand access to value-based primary care for Medicare patients.
The joint venture will develop and operate what it calls “senior-focused, payer-agnostic primary care centers,” which will be managed by Humana’s wholly owned, primary care subsidiary, Partners in Primary Care, and operate under the Partners in Primary Care brand.
WCAS, together with Humana, is making an initial commitment of approximately $600 million to the joint venture. WCAS will have majority ownership in the new company, while Humana will own a small minority stake.
The new joint venture is expected to more than double Partners in Primary Care’s footprint of senior-focused primary care centers over the next three years. It currently operates 47 care centers located throughout Kansas, Missouri, North Carolina, South Carolina, Texas, and Florida.
In a statement, Renee’ Buckingham, segment president, Humana’s Care Delivery Organization, said the company’s integrated, whole-person, value-based care model comprehensively and proactively addresses chronic conditions, wellness and social determinants of health. “We bring a differentiated offering and experience to seniors, often in areas where access to primary care is limited.”
Partners in Primary Care will receive a management fee, including performance-based incentives, for the management of all joint venture centers. In addition, the agreement includes a series of put and call options through which Partners in Primary Care may acquire WCAS’s interest in the joint venture, and through which WCAS may require Partners in Primary Care to purchase its interest in the joint venture, in stages over the next five to 10 years.
Humana’s wholly owned Conviva subsidiary, which operates 104 payer-agnostic senior-focused primary care centers located primarily in south Florida and Texas, is not party to this agreement.