Dive Brief:
- Humana will lease clinical space and open 23 senior-focused primary care clinics at Walmart Supercenter stores in Florida, Georgia, Missouri and Texas, the insurer said Wednesday.
- The centers, operating under the CenterWell Senior Primary Care and Conviva Care Centers brands, are expected to open no later than the first half of 2025, Humana said in a press release. Financial terms of the deal weren’t disclosed.
- The new clinics come as Humana has worked to expand its senior primary care network, while Walmart recently shuttered its health centers and virtual care business.
Dive Insight:
Humana’s primary care organization, which includes both CenterWell and Conviva locations, delivered care to about 318,000 seniors at nearly 300 centers in 15 states as of the end of March, according to a press release. The company operated about 200 centers in nine states at the start of 2022.
Early this year, Humana said it would enter new markets in North Carolina and Louisiana, as well as add new clinics in some of its current markets. The insurer also acquired new locations in Texas and Nevada last year as primary care provider Cano Health shed assets.
CenterWell could be a way to drive profits and offer primary care options to its members as insurers face increased regulatory and medical cost pressures in Medicare Advantage, where Humana has a huge presence, an analyst told Healthcare Dive early this year.
Humana pulled its profit outlook for 2025 when it reported first-quarter earnings in April, citing declining MA payment rates and other factors, like the cyberattack against claims processor Change Healthcare, creating more uncertainty for the payer.
Still, the company beat Wall Street expectations on revenue and earnings in the first quarter with revenue of $29.6 billion and net income of $741 million. Humana reports second-quarter financial results next week.
While Humana has expanded its clinics, Walmart recently exited the healthcare delivery business. In late April, the retail giant said it would close 51 health centers across five states and shutter its telehealth offerings, citing a challenging reimbursement environment and escalating costs that limited profits.
“Leasing these spaces to a well-known and successful healthcare delivery organization is a win for customers and patients, as we continue to focus on our core health & wellness business of Pharmacy and Optical,” Brian Setzer, executive vice president of Walmart Health and Wellness, said in a statement.
Last month, health technology startup Fabric said it had acquired Walmart’s MeMD telehealth assets for an undisclosed amount.
