Health insurer Humana Inc said on Monday that it would sell its Concentra urgent care and physical therapy services unit for about $1 billion to private equity firm Welsh, Carson, Anderson & Stowe and Select Medical Holdings Corp.Humana, which focuses on providing Medicare Advantage plans to older people, has been reviewing its assets for possible sales, and Wall Street analysts had surmised that Concentra was one of them. Humana said it would use the net proceeds to fund its existing $2 billion share buyback program and other corporate spending.Humana purchased Concentra in 2010 for $790 million, before current Chief Executive Officer Bruce Broussard took the helm in 2013. In 2010, Concentra had sales of $800 million and was seen as a way to diversify revenue and expand strategically. Humana sold some of its assets in the interim.Broussard said in a press release that Concentra "did not ultimately align with Humana's strategy as well as we had originally anticipated" but that the company would continue to invest in other primary care assets.
Humana Inc. (Humana) is engaged in providing health insurance and Medicare plans. Shares of HUM fell by 0.35% or $-0.64/share to $182.15. In the past year, the shares have traded as low as $103.89 and as high as $183.05. On average, 1223660 shares of HUM exchange hands on a given day and today's volume is recorded at 448749.
Select Medical Holdings Corporation (SEM) is engaged in operating both specialty hospitals and outpatient rehabilitation clinics in the United States. Shares of SEM traded higher by 4.58% or $0.67/share to $15.30. In the past year, the shares have traded as low as $11.41 and as high as $16.17. On average, 1327420 shares of SEM exchange hands on a given day and today's volume is recorded at 1133141.