Humana announced a joint venture with BlackRock to operate about 150 of its senior primary care clinics. BlackRock will buy out the existing ownership stake held by private equity firm Welsh, Carson, Anderson & Stowe in a deal valued at $2.8 billion. CenterWell will remain a minority owner and continue managing the clinics, with no changes to patient care. The transaction is expected to close by the end of the year.
The new structure removes a put option that had been part of the earlier WCAS arrangement, which could have forced Humana to repurchase the clinics at a predetermined price. Instead, CenterWell will have the option to buy clinics from the joint venture starting in 2028, and BlackRock can exit by selling remaining clinics after 2033. Humana says this gives it greater financial and operational flexibility, with a significantly lower cost of capital and reduced balance-sheet liabilities.
Humana has been expanding CenterWell to diversify its revenue, and the partnership will use BlackRock's capital to build new clinics and pursue acquisitions over the next two years. The insurer said the deal will not affect its 2026 earnings forecast, as it continues recovering from losses driven by high medical spending in 2024 and 2025.