Humana will enter into a joint venture with investment firm BlackRock to manage and operate its CenterWell primary care clinics for seniors.
The group of about 150 CenterWell locations is currently within a joint venture with Welsh, Carson, Anderson & Stowe (WCAS), and the partnership with BlackRock's HPS Investment Partners unit will replace that relationship, according to an announcement from the insurer. BlackRock will buy WCAS' equity in CenterWell for about $2.8 billion.
Humana said that the relationship with WCAS was critical to building scale for CenterWell, and the new deal with BlackRock will similarly support growth while "unlocking additional growth capital and providing greater financial flexibility for Humana," per the announcement.
CenterWell will continue to manage operations at the clinics, ensuring patients do not experience disruptions in their care or a decline in quality.
"We look forward to this new venture with BlackRock as our partner, while our growing network of CenterWell clinics remains dedicated to serving patients with our unique model of senior-focused, value-based care," said Sanjay Shetty, M.D., president of CenterWell.
"We are grateful to the WCAS team for their strong partnership and meaningful contribution over the past seven years and look forward to continued success for CenterWell Senior Primary Care with the support of BlackRock," Shetty continued.
The partners expect to spend the next two years though the joint venture deploying capital that will support the operation of the existing clinics as well as establish new locations and grow through acquisitions, according to the announcement. Humana will also have the option to buy clinics from the JV at its election beginning in 2028.
If CenterWell has not repurchased all of the clinics under the joint venture by 2033, BlackRock has the option to exit the partnership and sell any remaining clinics, with CenterWell having the option to make the first offer on those locations.
Humana said it expects "a significantly lower cost of capital under the new joint venture, reflecting the maturity of the business."
The deal is set to close in the fourth quarter of this year, and Humana does not expect it to impact the company's earnings guidance for 2026. It makes for Humana's second transaction with BlackRock this year, as the insurer is set to sell its stake in Gentiva to a group of investors that includes BlackRock.