Humana Forms New Joint Venture with BlackRock for CenterWell Primary Care Clinics

Humana announced it is entering into a new joint venture with funds managed by BlackRock to manage and operate its network of CenterWell Senior Primary Care clinics. The new arrangement replaces an existing joint venture with Welsh, Carson, Anderson & Stowe (WCAS), with BlackRock acquiring WCAS's equity stake. The new structure is expected to lower Humana's cost of capital and reduce balance sheet liabilities.

Key Details

• Agreement: The new joint venture will be formed through BlackRock's acquisition of WCAS's current equity stake. CenterWell will continue to manage and operate the clinics.
• Financial Impact: The new agreement eliminates a put option that existed in the prior JV, which is expected to result in a significant reduction in liabilities on Humana's balance sheet.
• Terms & Timeline: CenterWell will have an option to begin purchasing clinics from the joint venture starting in 2028. The transaction is expected to close in the fourth quarter of 2026.
• Guidance Affirmed: In the same filing, Humana affirmed its full-year 2026 adjusted EPS guidance of at least $9.00.