Humana acquires Concentra
The buyer: Humana (NYSE: HUM), based in Louisville, Ky.
The acquired: Concentra Inc., based in Addison, Texas
The price: $790 million
The timeline: Deal announced Nov. 23, 2010; signed agreement to affiliate Oct. 31, 2011. Deal is awaiting state and federal regulators' approval
The scoop: Humana's acquisition of Concentra, a privately held healthcare company with $800 million in annual revenues, would give the payer more than 300 medical centers in 42 states where Concentra delivers occupational medicine, urgent care, physical therapy, and wellness services to workers.
Acquiring the healthcare provider will help Humana keep costs down for its customers and enhance its wellness programs, according to representatives. "Concentra brings solid experience across a number of fronts that fit well with our consumer-focused strategy and will allow both organizations to provide a wide array of services to individuals needing access to convenient and affordable high-quality health care," Humana CEO Michael McCallister said in a Nov. 23, 2010 press statement.
Humana's primary driver for purchasing Concentra was to attain a physician-management platform it can use for occupational health. "We think there is a big future in work-site wellness," McCallister told a Houston Chronicle reporter in March. Concentra serves other employer customers, including high-profile clients such as Hewlett-Packard, Whole Foods Market, and Hobby Lobby, through health advisory services and operates more than 240 work-site medical facilities.