Health benefits and wellness company Humana Inc. has signed a definitive agreement to acquire American Eldercare Inc., Florida’s largest provider of nursing-home-diversion services.
Terms of the transaction were not disclosed.
American Eldercare serves frail and elderly individuals in home and community-based settings, according to a news release from Louisville-based Humana.
The release said American Eldercare is the provider service network selected to offer Medicaid long-term care services across Florida. Those services, which include providing managed care for seniors receiving services such as home care, assisted-living and nursing facilities, physical and occupational therapies, or hospice, complement Humana’s (NYSE: HUM) offerings for seniors and disabled individuals, the release said.
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Annualized revenue for American Eldercare currently is about $75 million, but that revenue is expected to increase to more than $1 billion in 2015, the release said.
The deal is subject to state regulatory approvals and is anticipated to close by the fourth quarter of 2013.
Business First reported on Humana’s acquisition plans last fall.
At the time, president and CEO Bruce Broussard told investors and analysts that Humana has plans to expand its integrated-care model in 2013 through acquisitions in six targeted geographic markets. Those markets were not identified.
Integrated care is designed to lower costs of providing health care, especially to patients insured under the Medicare and Medicaid programs.
Date: Jul 24, 2013