Humana Inc. on Tuesday announced that it will acquire acute care management company SeniorBridge, as the national insurer and provider of Medicare plans looks to strengthen its care management capabilities nationwide.
Eleven-year-old SeniorBridge specializes in the management of complex chronic conditions for seniors through its 44 offices across the country. Using its care-management teams of nurses, social workers and other caregivers, the company is focused on health maintenance and improvement for senior citizens in a home setting.
"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 CEO in a press release announcing the deal. "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."
SeniorBridge, which is on track to post $72 million in revenue this year, currently focuses on providing its care management services to private-payers. Under Humana, the company expects to expand its healthcare services to Humana's nearly 2 million Medicare plan members, as well. The company announced that it would seek to the appropriate Medicare certification in order to begin offering these services.
For SeniorBridge the ability to join with Humana should allow the company to expand its model of caring for complex chronic conditions and bring it to an even broader market.
"As one of the nation's leading healthcare companies, Humana has a long history of advocating for high quality affordable care - particularly for older and disabled populations," said Eric Rackow, MD, SeniorBridge president and CEO on the company's website. "This news is an important validation of SeniorBridge's innovative model of care and will allow our clients to benefit from Humana's vision, robust health programs and technology. These resources will enhance the breadth of high quality services we provide to new and existing clients."
According to the companies, the provision of senior care services has a dramatic affect on health outcomes and also help achieve the critical goals of both preventing hospital readmission and use of use of emergency department care.
"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," added Paul Kusserow, Humana's chief strategy and corporate development officer in a prepared statement. "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."
Exact terms of the planned acquisition, including the purchase price, were not released and the acquisition is not expected to have a material affect on 2012 earnings for Humana.