Leading care-management and in-home care provider helps seniors stay healthier and stay in their homes
LOUISVILLE, Ky.--(BUSINESS WIRE)--Humana Inc. (NYSE: HUM) announced today it has signed an agreement to acquire SeniorBridge, a New York-based chronic-care provider best known for providing in-home care for seniors. Terms were not disclosed.
Since its founding in 2000, SeniorBridge has been managing complex chronic care for seniors across the U.S. SeniorBridge’s care-management teams of nurse practitioners, nurses, social workers and certified caregivers help seniors maintain and improve their health while remaining in their homes. A typical SeniorBridge patient is 65 or older and has multiple chronic conditions.
“SeniorBridge fills a growing market need and is consistent with Humana’s focus on delivering clinical care for seniors in their homes,” said Michael B. McCallister, Humana’s Chairman and Chief Executive Officer. “Acquiring SeniorBridge will immediately expand Humana’s existing clinical capabilities with the addition of SeniorBridge’s national network of 1,500 care managers. The company does a terrific job of reducing hospital readmissions and emergency-room utilization, all while helping seniors achieve lifelong well-being.”
“We are excited to join the Humana family,” said Eric Rackow, M.D., President and Chief Executive Officer of SeniorBridge. “Both of our companies are dedicated to ensuring the lifelong well-being of seniors. Together, Humana and SeniorBridge can transform how we care for adults with chronic conditions to help them stay safely at home.”
While SeniorBridge’s current focus is private-pay customers, Humana also intends to fully leverage SeniorBridge’s capabilities across Humana’s current health plan membership – especially with Humana’s Medicare members and growing population of members enrolled in Special Needs Plans by seeking the appropriate certification as a Medicare provider.
Professional senior-care services can greatly improve health outcomes, alleviate stress and increase function. When patients with complicated medical, functional and cognitive conditions receive care coordination in the home by specially trained geriatric care managers, hospitalizations and emergency-room admissions can be substantially reduced.
“With SeniorBridge services available for Humana members in the years ahead, Humana will enable more seniors to stay in their homes while spending less for their overall care,” said Paul Kusserow, Humana’s Chief Strategy and Corporate Development Officer. “The acquisition will also increase Humana’s clinical knowledge and strengthen the company’s offerings for members with complex chronic-care needs – expanding the continuum of care options for its sickest members.”
Current demographic trends indicate an increased need for a depth of care-management services available to seniors. As the baby boomer generation ages into Medicare, the 65+ population is expected to grow from more than 40 million today to 55 million by 2020 and 72 million by 2030.* Meanwhile, people are developing more chronic conditions – 73 percent of people who are 65 or older have two or more chronic conditions.**
Through its Humana Cares division, Humana has strong programs in place to provide care management to chronically ill members. SeniorBridge will enable Humana to provide care services directly, particularly to support activities of daily living (i.e. eating, dressing) and instrumental activities of daily living (i.e. housework, money management, grocery shopping). This combination of care management and custodial care services will enhance Humana’s ability to meet the holistic needs of seniors, their families and caregivers.
The acquisition also demonstrates Humana’s commitment to grow its overall Health and Well-Being Services segment, as the company’s in-home-care reach will expand with SeniorBridge joining Humana.
SeniorBridge’s 2011 revenue is projected to be approximately $72 million. The transaction is subject to both state and federal regulatory approvals and is expected to close in the first half of 2012. Humana’s acquisition of SeniorBridge is not expected to have a material impact on Humana’s financial earnings guidance for the year ending December 31, 2012.
* Source: U.S. Commerce Department, Bureau of the Census
** Source: The Robert Wood Johnson Foundation analysis of 2006 Medical Expenditures Survey
This news release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in investor presentations, press releases, Securities and Exchange Commission (SEC) filings, and in oral statements made by or with the approval of one of Humana’s executive officers, the words or phrases like “expects,” “anticipates,” “intends,” “likely will result,” “estimates,” “projects” or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions, including, among other things, information set forth in the “Risk Factors” section of the company’s SEC filings, a summary of which includes but is not limited to the following:
In making forward-looking statements, Humana is not undertaking to address or update them in future filings or communications regarding its business or results. In light of these risks, uncertainties, and assumptions, the forward-looking events discussed herein may or may not occur. There also may be other risks that the company is unable to predict at this time. Any of these risks and uncertainties may cause actual results to differ materially from the results discussed in the forward-looking statements.
Humana advises investors to read the following documents as filed by the company with the SEC for further discussion both of the risks it faces and its historical performance:
SeniorBridge is a leading national care management company with an 11-year heritage in helping people cope with the challenges of complex chronic illnesses such as congestive heart failure, chronic obstructive pulmonary disease, Parkinson’s disease, and Alzheimer’s disease. The company’s 44 offices and national care management network works with families, physicians, hospitals and health plans to address the total well-being of its clients through a comprehensive process of care assessment, planning, coordination and advocacy. The company is headquartered in New York City and benefits from the support of its advisory board of internationally known experts in geriatrics.
For more information about SeniorBridge, visit www.seniorbridge.com.
Humana Inc., headquartered in Louisville, Kentucky, is a leading health care company that offers a wide range of insurance products and health and wellness services that incorporate an integrated approach to lifelong well-being. By leveraging the strengths of its core businesses, Humana believes it can better explore opportunities for existing and emerging adjacencies in health care that can further enhance wellness opportunities for the millions of people across the nation with whom the company has relationships.
More information regarding Humana is available to investors via the Investor Relations page of the company’s web site at www.humana.com, including copies of: