Dive Brief:
- Reuters reported this week Humana Inc. has hired Goldman Sachs Group Inc. to advise on the potential sale of its urgent care subsidiary Concentra. Humana purchased the provider from private equity firm Welsh, Carson, Anderson & Stowe in 2010 for $790 million.
- In 2013, Quest Diagnostics purchased Concentra's toxicology and clinical laboratory business from Humana for an undisclosed number. Neither Goldman nor Humana, based in Louisville, KY, commented on the potential sale.
- Concentra offers urgent care, occupational medicine and physical therapy to more than 300 medical centers and operates more than 245 workplace medical facilities across the country. According to Reuters, James Murray, Humana's COO, told investors this summer Concentra's business was doing well, but the company was trying to shift it toward primary care and away from workers' compensation.
Dive Insight:
The pairing between Humana and Concentra was relatively short-lived and may signal challenges with healthcare providers and insurers under one shingle. In an attempt to manage costs, insurer-provider integration is becoming slightly more prevalent in the industry, with recent moves among groups like Catholic Health Initiatives and Ascension Health.
But the trend is so new it might take some time to see if the business' plans come to fruition. Studies have shown that these acquisitions can drive up the cost of premiums without necessarily improving care. These deals are also being watched by regulators as a potential anti-competitive threat.