Humana selects Shetty to lead Centerwell after hospice sale

Humana Inc. (NYSE: HUM) has appointed Dr. Sanjay Shetty to serve as President of Centerwell’s Medical Services Division.

Shetty’s appointment is a continuation of a reorganization the insurance giant undertook last year and split its business into two segments: insurance and Centerwell. The latter contains the former home healthcare assets of Kindred at Home, which Humana acquired 100% in a $5.7 billion deal in 2021.

Humana later sold a 60% stake in the Kindred hospice business to private equity firm Clay, Dubilier and Rice for $2.5 billion. Humana retains the remaining 40%.

Kindred at Home’s transactions reflect its deeper dive into risk-based reimbursement programs such as Medicare Advantage (MA). With Centerwell’s advanced home care capabilities, Humana could theoretically generate savings by caring for more patients in a lower cost environment and reducing hospitalizations and readmissions.

“In the home, we continued to expand our value-based model, which coordinates care and optimizes home health care costs, [durable medical equipment] and infusion services,” Humana CEO Bruce Broussard said in an earnings call. “We remain on track to reach approximately 40% of our MA participants by 2025 with a fully value-based model. In addition, we are implementing some of these capabilities offline to accelerate value creation.”

Centerwell includes home health services, a pharmacy, and Humana specialty pharmacies. The business segment also includes joint ventures with private equity firm Welsh, Carson, Anderson & Stowe (WCAS), which offer primary health care services to the elderly.

This segment earned over $4.1 billion in the fourth quarter of 2022, up from $4.08 billion in the previous year’s quarter. According to Broussard, his growth was offset by a loss in revenue from the sale of the hospice.

Shetty, the newly appointed president of Centerwell, will take office April 1. He is currently the president of the Texas-headquartered Steward Health Care System, which includes 39 hospitals nationwide, a large multidisciplinary medical group, and accountable healthcare organization.

“This newly created role comes as we continue to significantly expand our Centerwell capabilities by strengthening our payer agnostic platform and integrating the clinical experience for patients on the Centerwell platform,” said Broussard. “[Shetty] will draw on his extensive experience in leading a large healthcare system, as well as his deep understanding of technology and the application of data and analytics, as well as workflow modernization to accelerate the integration of our Centerwell assets.”

In general, Humana, Inc. brought in more than $22.4 billion in Q4 last year, up from $21 billion in Q4 2021.

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