How Clinic JV Funding At Humana (HUM) Has Changed Its Investment Story

Humana announced a joint venture with HPS Investment Partners, part of BlackRock, to manage nearly 150 CenterWell Senior Primary Care clinics, with BlackRock acquiring WCAS’s equity stake valued at about US$2.8b and Humana expecting reduced balance sheet liabilities. The structure keeps CenterWell running the clinics while bringing in fresh capital for new locations and acquisitions. This directly affects Humana’s capital intensity, funding sources, and long term optionality to buy back the...