Humana to Double Down on Value-Based Primary Care Clinics Targeting Medicare Patients

After cutting its outlook in January for Medicare Advantage member growth in 2022 by roughly half due to increased competition, Humana is increasing its focus on adding more value-based primary care clinics for Medicare patients over the next three years.

The payer recently said it plans to open about 100 new primary care clinics in a second joint venture with the private equity firm Welsh, Carson, Anderson & Stowe (WCAS).

The clinics will be operated and managed under Humana’s CenterWell Senior Primary Care plan. The $1.2 billion expansion comes on the heels of an earlier venture with WCAS to open 67 clinics by early 2023.

Humana now operates 214 clinics, including 37 under its first WCAS joint venture and 177 other wholly owned centers. The payer will receive a management fee with performance-based incentives for managing the joint-venture clinics. The agreement also includes put-and-call options through which Humana may buy WCAS’ interest beginning in 2028 or five years after the opening of each group of clinics.