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Humana to spin off majority interest in KAH hospice, personal care divisions

Humana to spin off majority interest in KAH hospice, personal care divisions

LOUISVILLE, Ky. – Humana will divest a 60% interest in Kindred at Home’s hospice and personal care divisions to private investment firm Clayton, Dubilier & Rice for approximately $2.8 billion. 

These divisions include patient-centered services for Hospice, Palliative, Community and Personal Care. 

“While palliative and hospice services are important components in the continuum of care that Humana offers patients, we are confident that we can deliver desired patient outcomes and improved customer experiences through partnership models rather than fully owning KAH Hospice,” said Susan Diamond, CFO of Humana. “We explored a broad range of alternatives and believe this transaction best allows Humana to divest majority ownership of these non-core businesses today, while still maintaining a strategic minority interest through our remaining stake.” 

Humana had previously indicated its intent to divest a majority stake in these non-core businesses when it acquired the remaining interest in Kindred at Home in April 2021. 

In March, Humana announced it would transition Kindred at Home’s home health division to the CenterWell Home Health Brand in Washington, Oregon, Idaho, Nevada, Arizona, New Mexico and North Carolina. 

Humana’s transaction with CD&R is expected to close in the third quarter of 2022.

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