Humana Inc. (NYSE: HUM) continues to grow its home health segment.
Company leaders and executives made that — and other plans — clear at the company’s investor meeting Thursday.
“Our focus on sustainable growth and operational efficiency has resulted in strong year-over-year performance and a positive long-term outlook,” Andy Agnobi, president of Huma’s home solutions business, said on the call. “Last year, Center Well Home Health grew same-store gross receipts by 5%, outperforming top competitors who saw negative-to-negative growth over the same period.”
Center Well Home Health completed the renovation process on September 1st.
An efficient sales team, staff retention and the establishment of key referral relationships at regional and regional levels are factors in that growth, Agnobi said. This is why Center Well has seen such strong growth.
And while growing organically has worked well for Huma so far, M&A is still on the agenda.
“M&A is an important way to drive profitable growth and support our strategic priorities, such as improving nursing capacity and scaling our value-based model,” Agunobi said. “We continue to actively monitor the market for potential acquisition and partnership opportunities and expect them to become more accessible in the near to medium term.”
Labor challenges have slowed the overall growth of the home health industry, but Agnobi is confident Humana can take advantage of a fragmented market.
“The industry is highly fragmented, with the top 20 home health players accounting for less than a third of the total market share,” he said. “We believe this provides an opportunity for continued 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 leader in the growth of its core business going forward.”
Humana also continues to see positive progress with Medicare Advantage (MA).
Alan Wheatley, president of Huma’s retail division, said the company has seen MA’s value proposition continue to improve.
“Medicare Advantage leads to improved health outcomes and MA members are healthier than members joining Original Medicare,” Wheatley said. “MA health plans and the health care providers who provide care to our members prioritize preventive care. Working together, we are changing the nature of health care delivery in this country and delivering vastly improved health outcomes for our clients.
The Home Health business will position Humana as the market leader in home health, said Bruce Broussard, President and CEO of Humana.
“Complex patients in our home health business are moving toward value-based models and offer an opportunity for payment and care model innovation,” said Broussard. “We are confident that home care will continue to be a growing and important aspect of care, and as our future unfolds, our assets will position us with options and new directions for growth.”