Humana agrees to buy an Florida supplier in bankruptcy The Villages Health for $ 50 million

Diving brief:

• Humana has agreed to acquire a central health care provider responsible for debt for $ 50 million while the insurer continues to develop his medical network nationally.
• Humana’s health subsidiary, Centerwell, has agreed to acquire the health of the villages as part of the supplier’s strategic restructuring, which includes a bankruptcy file in Chapter 11, according to a press release. TVH said that he had decided to continue bankruptcy after discovering major maladie billing errors that hung him for hundreds of millions of overpayed dollars and penalties in the United States government.
• The sale of the supplier at Centerwell is still subject to the approval of the court. Centerwell could also be overcome by other parties in the bankruptcy auction process for the 10 TVH medical centers.

Diving insight:

TVH, a supplier of the County of Sumter in Florida who serves a large retirement community, discovered in the fall that he had been accidentally overcharged Medicare. He reported the problems to the government and has spent the last six months working with Medicare to correct them – a work that continues and is separated from the potential TVH sale in Centerwell, according to the press release.

TVH owes $ 361 million to the federal government, according to documents filed with the bankruptcy court.

And Washington is only one of the supplier’s more than 200 creditors: on the whole, TVH estimated liabilities from $ 100 to 500 million against estimated assets from $ 50 million, according to deposits.

According to TVH, the involvement of the agreement with Centerwell, which allows it to remain operational during the sales process, was necessary to guarantee the continuity of care for more than 55,000 patients.

“This was by no means a decision overnight, and it was not easy. We want to reassure our community that there will be no effect on care for patients experienced by our patient population,” said Bob Trinh, CEO of TVH, in a statement.

In the center concluded what is called a “hunting horse” purchase agreement to add TVH Eight primary care centers and two specialized care centers at its portfolio of medical offices. An offer of horses hunting offers speech for a subsequent action of the assets of a bankrupt company and, as such, is not final.

In the statement, Centerwell president, Dr. Sanjay Shetty said the division was impatient to provide his “personalized and integrated care” on TVH. A Humana spokesman refused to provide more details on the reasons why the company was interested in acquiring TVH.

However, Humana has constantly built Centerwell to provide primary care to registered in its insurance programs, hoping to save money and improve the results by coordinating better care. By having service providers, Humana can also pay for health care, keeping a larger share of the health expenditure of members internally.

And, the supply of medical services to other payers too much reinforces Humana’s revenues at a time when inherited health insurance companies continue to fight in the middle of the increase in medical costs and political turbulence.

At the end of 2024, Humana operated more than 340 primary care centers thanks to his senior primary care of Centerwell and Guest Senior primary care marks. The payer said in February that his primary care division plans to add 30 new centers this year.

Centerwell’s profits regularly increase as its network does. The division posted operational income of $ 392 million in the first quarter, up 39% from one year to the next.