Humana has selected a new leader for its CenterWell healthcare delivery division as it seeks merger and acquisition targets to grow its operations, the health insurer announced Wednesday. .
Dr. Sanjay Shetty will be president of CenterWell, which provides primary care, home health care and mail-order medicine, starting April 1. Shetty will join insurance company after more than a decade with the for-profit, physician-owned Steward based in Dallas Health Care System, where he is president of the Steward Health Care Network.
CenterWell represents Humana’s push into healthcare services, Humana President and CEO Bruce Broussard told investors on Wednesday’s earnings call. Humana began restructuring last year, splitting the company into an insurance division and CenterWell.
“This newly created role comes as we continue to meaningfully expand CenterWell’s capabilities, strengthen our payer-independent platform, and integrate services,” said Broussard. clinical experience for patients on the CenterWell platform,” said Broussard.
Humana is prioritizing investments to expand CenterWell, CFO Susan Diamond said. “From an M&A perspective, we remain focused on opportunities to enhance CenterWell’s capabilities, with a particular focus on growing our primary and family healthcare businesses,” she said. Broussard said Humana is also recruiting doctors to arrange value-based payments.
Humana reported revenue of $92.87 billion last year, up 11.8%; net income fell 4.5% to $2.8 billion. In the fourth quarter, Humana’s revenue grew 7.3% to $21.28 billion and net loss increased 7.1% to $15 billion.
The insurer also announced that George Renaudin has been promoted to president of the company’s Medicare and Medicaid businesses. Humana expects its Medicare Advantage membership to grow by at least 625,000 this year, which is an increase of nearly 14%.
“This strong membership outlook reflects high-quality growth, with our improvement in retention more than double expectations and marks a continuation of our strong track record. in terms of membership growth, with our compound annual growth from 2018 to 2022 at 10.4% versus industry growth of 9.7%,” Broussard said in a press release. Humana’s Medicaid plans cover more than 1 million people in seven states, the company reported.
