Humana Inc. (NYSE: HUM) will continue to expand its home healthcare segment.
The company’s leaders and executives made that — and other plans — clear at the company’s investor meeting on Thursday.
“Our focus on sustained growth and operational efficiency has generated strong year-over-year performance and a positive long-term outlook,” said Andy Agwunobi, president of Humana’s home solutions business. , when calling. “Over the past year, CenterWell Home Health has grown total same-store admissions by 5%, significantly outpacing major competitors that experienced flat or negative growth over the same period.”
CenterWell Home Health completed its rebranding process on September 1.
An effective sales team, workforce retention and building key referral relationships at state and regional levels were the reasons for this growth, Agwunobi said. This is why CenterWell has been able to experience such strong growth.
And while organic growth has worked well for Humana so far, mergers and acquisitions are still on the agenda.
“Mergers and acquisitions are an important avenue to drive profitable growth and support our strategic priorities, such as improving nurse capacity and scaling our value-based model,” Agwunobi said. “We will continue to actively monitor the market for accretive acquisition and joint venture opportunities and expect these to become increasingly available in the short to medium term.”
Labor issues have slowed the overall growth of the home healthcare industry, but Agwunobi is confident that Humana can take advantage of a fragmented market.
“The industry is also highly fragmented, with the top 20 home healthcare players holding less than a third of the total market share,” he said. “We believe this provides an opportunity for further growth through mergers and acquisitions. With approximately 6% market share, CenterWell Home Health is the market leader in this fragmented industry and is well positioned to continue to be a growth leader in its core business in the future.
Humana also continues to see positive momentum with Medicare Advantage (MA).
The company sees MA’s value proposition continuing to improve, also said Alan Wheatley, president of Humana’s retail segment.
“Medicare Advantage improves health outcomes, and MA members are healthier than members who join Original Medicare,” Wheatley said. “MA health plans and the health care providers who provide care to our members prioritize preventive care. By working together, we are changing the nature of health care delivery in this country and dramatically improving the health outcomes of our clients. »
The home health business also anchors Humana’s presence as a market leader in home health, said Humana President and CEO Bruce Broussard.
“The complexity of patients within our home healthcare business provides the opportunity to innovate in payment and care model by moving to value-based models,” Broussard said. “We believe home care will be an increasingly relevant and important aspect of care in the future and our assets position us with options and new growth drivers as that future unfolds.”