Humana and two private equity firms have finalized a $1.4 billion acquisition of hospice provider Curo Health Services, the health insurance giant announced on Wednesday.
The closing came nearly three months after Humana announced it would buy the hospice provider alongside private equity firms TPG Capital and Welsh, Carson, Anderson & Stowe from Thomas H. Lee Partners. The insurer will own a 40% stake in the company.
Humana and the firms plan to combine Curo with Kindred at Home, which they acquired earlier this month for $4.1 billion. Under the deal, Kindred’s home health, hospice and community care businesses will be separated into a standalone business, 40% of which is owned by Humana. Over time, Humana will have the option of buying the remaining ownership in the company. The combination would create the largest hospice provider in the country.
The two acquisitions reflect a significant step into postacute care on Humana’s part. Curo operates 245 locations in 22 states, and Kindred has operations in 16 states. Humana said the acquisition will allow it to utilize technology, data and analytics to coordinate care and track clinical outcomes.