- Humana Inc. has revealed that it will sell Concentra, a provider of occupational health, urgent care and physical therapy, for $1.06 billion in cash to MJ Acquisition Corp.
- MJ Aquisition group is made up of hospital operator Select Medical Holdings Corp. and private equity firm Welsh, Carson, Anderson & Stowe XII, LP.
- The sale is expected to close during Q2 of this year.
Humana acquired Concentra in December 2010 for $790 million, and it doesn't look like the 5-year turn-around was the original plan. The insurer purchased the company as part of a series of efforts to expand care opportunities for its members, including investments into primary care platforms like physician practices and medical service organizations. Ultimately, according to a company release, Humana found that the primary care platform proved "to better advance the company's integrated care delivery model than Concentra's focus on occupational injuries."
"Though Concentra's operations did not ultimately align with Humana's strategy as well as we had originally anticipated, we believe Humana and Concentra have gained valuable insights into consumer behavior over the past several years that will serve us both well moving forward," Humana CEO Bruce Broussard said in the release.