Centene selling off majority stake in U.S. Medical Management

Centene will sell off its majority stake in home health company U.S. Medical Management, the insurer announced Wednesday.

Centene will maintain a minority stake in USMM, according to the announcement, and will sell the rest of its stake to Rubicon Partners; Valtruis, a WCAS company; Oak HC/FT; and HLM Venture Partners. 

USMM operates a family of companies that provide home health services, and in 2015 launched an accountable care organization. It owns assets that assist with home-based primary care and house call programs, according to the announcement.

"With more than 25 years of experience in home-based care, USMM has outperformed in numerous value-based care initiatives and consistently delivered lower costs, better health outcomes, and higher patient satisfaction ratings," said Sarah London, vice chairman of Centene's board of directors, in a statement.

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"We are confident this transaction will best position USMM to expand its reach and impact while helping Centene to deliver on our value creation plan," London said. "As part of our ongoing portfolio review, Centene intends to use the proceeds from the sale to repurchase stock, in a first step towards a material stock repurchase program."

USMM's Accountable Care Partners has saved Medicare $154 million since its launch, according to the announcement.

The sale is subject to regulatory requirements and other customary closing conditions.

"This is a unique opportunity to partner with one of the most important value-based healthcare companies in the country. Patients depend on USMM every day for medical care where it is needed most—in the convenience of their homes. I strongly believe in this mission and look forward to working closely with the team to make a significant difference in peoples' lives," said Adam Boehler, CEO of Rubicon Founders, in a statement.