In Chapter 11, the Villages Health to Sell Assets to Humana’s CenterWell

The Villages Health (TVH), the healthcare system for The Villages retirement community in Florida, has filed for Chapter 11 bankruptcy. 

At the same time, CenterWell Senior Primary Care, the nation's largest senior-focused value-based primary care provider, has entered into a "stalking horse" asset purchase agreement with TVH. The agreement provides for CenterWell, the healthcare services business of Humana Inc., to acquire TVH's assets as a going concern, including eight primary care centers and two specialty care centers.

A Court order approving the sale, following an auction process during which other parties may submit an offer to purchase TVH's assets, will be a condition of the transaction moving forward and closing. TVH will continue to operate its business and manage its affairs without interruption during the sale process.

In the fall of 2024, TVH identified a potential set of problems with its Medicare billing practices and has spent the past six months working with the Medicare program toward a resolution, estimated at hundreds of millions of dollars in overpayments and likely significant accompanying penalties. Local news reports said that the bankruptcy filing shows the company owes between $100 million and $500 million, but has assets worth $50 million to $100 million. The filing says The Villages Health System owes the U.S. government $361 million.

"TVH is a clinically excellent healthcare system. We believe this plan of reorganization and planned transaction with CenterWell is in the best interests of our patients, physicians, other clinicians, employees, partners and community members, and will ultimately result in a more promising future," said Elliot Sussman, M.D., M.B.A., chairman of the board and physician founder of The Villages Health, in a statement. "Under CenterWell, this healthcare system will continue to be a leading provider of patient-centered, primary care-driven and community-based healthcare. Our primary goal remains to keep our patients healthy and to heal them quickly, as it has always been from the inception of TVH."

"The clinicians and staff at The Villages Health share our passion for making sure each patient they see feels cared for and supported as they seek to enjoy a healthy and active lifestyle," said Renee Buckingham, president of CenterWell Senior Primary Care, in a statement. "We look forward to welcoming the TVH team to CenterWell Senior Primary Care and working together to improve the health of the residents of The Villages and the surrounding communities."