And just like that, another healthcare sector acquisition is done.
Humana, along with TPG Capital and Welsh, Carson, Anderson & Stowe, completed the acquisition of Kindred Healthcare, the companies announced on Monday.
Under the deal, initially announced late last year, Kindred’s home health, hospice and community care businesses will be separated into a standalone business called Kindred at Home, 40% of which is owned by Humana. Over time, Humana will have the option of buying the remaining ownership in the company.
The three companies purchased the long-term care provider for $4.1 billion. Kindred weathered a lawsuit from a hedge fund company that claimed the $9 per share price was well below market value and failed to account for a proposed rule pulled back by the Centers for Medicare & Medicaid Services that would have cut home health reimbursement.
RELATED: Humana emphasizes ‘robust data sharing,’ analytics and digital tools in Kindred acquisition
The acquisition continues a trend of insurers purchasing providers and extends Humana's reach into the post-acute care sector where many insurers believe there is an opportunity for better care coordination.
The groups also expect to close on their $1.4 billion purchase of hospice provider Curo Health later this month.
Following the initial announcement in December, Humana emphasized the opportunity for "robust data sharing" and the ability to integrate new tools like remote monitoring and telehealth.