Humana to Acquire MD Care - Analyst Blog
September 27 2011 - 6:04AM
Zacks
On Friday, Humana Inc. (HUM) announced a deal
to acquire California-based MD Care for an undisclosed amount. The
deal is expected to close by the end of the year, after obtaining
approval from both state and federal regulatory bodies.
MD Care is a three-year old privately-held health maintenance
organization that operates in four southern-Californian counties,
namely Los Angeles, Orange, San Bernardino and Riverside. It
provides the
Medicare Advantage medical plan, prescription drug plan and
special needs plan to about 15,000 members.
The deal is not expected to significantly affect Humana’s 2011
earnings. MD Care generated revenues of $155 million in 2010, while
Humana generated $33.9 billion in the same year.
Humana is one of the leading Medicare providers in the US and
has been rapidly expanding its Medicare business through
acquisitions as well as workforce expansion. On September 14, 2011,
the company had announced its plans of adding 200 new full-time
employees at the company’s National Medicare service center in
Louisville, a majority of which will be working at Humana’s
Medicare call center as customer care specialists and front-line
supervisors.
Last month, the company had announced the purchase of another
Medicare Advantage health maintenance organization, Arcadian
Management Services, which has members in 15 U.S. states.
Prior to this, in July 2011, Humana had announced its plan to
hire 200 full-time employees, including customer care specialists
and front-line supervisors, at its national Medicare service
operations center in Tampa Bay.
Humana is a leader in the
insurance and healthcare industry, which has other major
players like CIGNA Corporation (CI), Aetna
Inc. (AET) and UnitedHealth Group Inc.
(UNH). The company currently carries a Zacks #1 Rank, which
translates into a Strong Buy rating for the near term.
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