Humana has chosen a new leader for its CenterWell healthcare delivery division as it looks for merger and acquisition targets to grow the operation, the health insurance company announced Wednesday.
Dr. Sanjay Shetty will be president of CenterWell, which offers primary care, home health and mail-order pharmacy, starting April 1. Shetty will join the insurer after more than a decade with the Dallas-based physician-owned, for-profit Steward Health Care system, where he is president of its Steward Health Care Network.
CenterWell represents Humana’s push into healthcare services, Humana President and CEO Bruce Broussard told investors during an earnings call Wednesday. Humana initiated a restructuring last year that divided the company into an insurance division and CenterWell.
“This newly created role comes as we continue to meaningfully expand our CenterWell capabilities, strengthening our payer-agnostic platform and integrating the clinical experiences for patients across the CenterWell platform,” Broussard said.
Humana is prioritizing investments to expand CenterWell, Chief Financial Officer Susan Diamond said. “From an M&A perspective, we remain focused on opportunities to enhance our CenterWell capabilities with a particular focus on growing our primary care and home businesses,” she said. Humana also is recruiting physicians for value-based payment arrangements, Broussard said.
Humana reported $92.87 billion in revenue last year, an 11.8% increase; net income fell 4.5% to $2.8 billion. During the fourth quarter, Humana’s revenue rose 7.3% to $21.28 billion and its net loss increased by 7.1% to $15 billion.
The insurer also announced George Renaudin has been promoted to president of its Medicare and Medicaid business. Humana expects its Medicare Advantage membership to grow by at least 625,000 this year, which would be an increase of nearly 14%.
“This robust membership outlook reflects high-quality growth, with our improvement in retention more than doubling expectations, and marks a continuation of our strong track record of membership growth, with our compounded annual growth from 2018 to 2022 at 10.4% as compared to industry growth of 9.7%,” Broussard said in a news release. Humana’s Medicaid plans cover more than 1 million people in seven states, the company reported.