Humana forms JV to expand primary care centers

Humana (NYSE:HUM) Partners in Primary Care and Welsh, Carson, Anderson & Stowe (WCAS) have entered into the joint venture (JV) that will expand access to value-based primary care for Medicare patients.

The JV will develop and operate senior-focused, payor-agnostic, primary care centers, which will be managed and operated by Humana’s wholly-owned subsidiary, Partners in Primary Care.

WCAS together with Humana, is making an initial commitment of ~$600M to the JV. WCAS will have majority ownership in the new company whereas Humana will own a small minority stake.

Partners in Primary Care will receive a management fee, including performance-based incentives, for the management of all JV centers.

In addition, the agreement includes a series of put and call options through which Partners in Primary Care may acquire WCAS’s interest in the JV.

https://seekingalpha.com/news/3537174-humana-forms-jv-to-expand-primary-care-centers