Humana Inc. (NYSE: HUM) will continue to expand its home health segment.
The company’s executives and executives made this clear — and other plans — during the company’s investor meeting on Thursday.
“Our focus on sustainable growth and operational efficiencies has resulted in a strong year-over-year performance and a positive long-term outlook,” said Andy Agwunobi, president of Humana’s Home Solutions business, during the conference call. “Over the past year, CenterWell Home Health increased total same-store visits by 5%, significantly outperforming top competitors, which had flat to negative growth over the same period.”
CenterWell Home Health completed its rebranding process on September 1st.
An efficient sales team, employee retention and building key referral relationships at the state and regional levels are behind this growth, Agwunobi said. This is why CenterWell has seen such strong growth.
And although organic growth has worked well for Humana so far, M&A are still on the agenda.
“M&A is an important way to drive profitable growth and support our strategic priorities such as: B. improving care capacity and scaling our value-based model,” said Agwunobi. “We will continue to actively monitor the market for value-added acquisition and joint venture opportunities and expect them to become increasingly available in the short to medium term.”
Work-related challenges have slowed the overall growth of the home healthcare industry, but Agwunobi is confident Humana can capitalize on a fragmented market.
“The industry is also highly fragmented, with the top 20 home health players having less than a third of the overall market share,” he said. “We believe this presents 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 remain at the forefront of growth in its core business going forward.”
Humana also continues to see positive impetus for Medicare Advantage (MA).
The company expects MA’s value proposition to continue to improve, said Alan Wheatley, president of Humana’s retail segment.
“Medicare Advantage leads to improved health outcomes and members in MA are healthier than members who join original Medicare,” Wheatley said. “MA health plans and the health care providers that serve our members prioritize preventive care. Together we are changing the way healthcare is delivered in this country and delivering vastly improved healthcare outcomes for our customers.”
The home health business also solidifies Humana’s presence as a leader in the home health space, said Bruce Broussard, President and CEO of Humana.
“The complex patients in our home health business present the opportunity for innovative payment and delivery models through the transition to value-based models,” said Broussard. “We are confident that home care will be an increasingly relevant and important side of care in the future, and our assets position us with options and new growth vectors as that future unfolds.”