Humana to Acquire Enclara Healthcare
Humana Inc. (NYSE: HUM) announced it has signed a definitive agreement to acquire privately-held Enclara Healthcare (Enclara), one of the nation’s largest hospice pharmacy and benefits management (PBM) providers. With this strategic move, Humana will be able to enhance its wide-ranging care package to serve pharmacy-based requirements associated with hospice care. The deal will also allow Humana to boost its PBM competitiveness, which is crucial as other health insurers concentrate efforts to solidify their presence in the PBM arena (i.e. Anthem launched IngenioRx, Cigna acquired Express Scripts).
Humana’s acquisition of Enclara includes procurement of GuidantRX, Avanti Health Care Services, and Avanti Health Care Services. The organization noted particular goals that it has for this acquisition, especially associated with its senior population. As of the announcement, Enclara operates with scalable models that have allowed them to serve a population of more than 450 hospice providers and 97,000 hospice patients per day. The organization operates this large customer base with scalable models. Over the next decade, 46% of inpatient care has the potential to be moved to patient homes; with a significant portion of all patient services being delivered remotely.
Enclara represents a logical extension of Humana Pharmacy’s strategy given the company’s unique ability to play a role in advanced illness care and supplement our existing care delivery system. – Scott Greenwell, PharmD, President, Humana Pharmacy Solutions
Financial terms of the deal were not disclosed and the transaction is anticipated to close during the first half of 2020 subject to customary closing conditions and state and federal regulatory approvals. The transaction is expected to have an immaterial impact on earnings in 2020. According to Humana’s spokesperson Marina Renneke, “there will be no impact on Enclara’s employees, operations, and business. Humana plans to integrate Enclara into its broader pharmacy and strategies through a multi-stage approach over the next two years.” In the release statement, Humana said that it enables the insurer to cover pharmacy-related requirements for hospice care patients and drive technology for in-home pharmacy through enhanced electronic medical record connectivity.
I am excited about the opportunity to work closely with Humana to carry on Enclara’s mission of serving as an invaluable resource to hospice providers. This combination will allow Enclara to accelerate innovation aimed at delivering timely and cost-effective pharmacy solutions. – Andrew Horowitz, Founder and Chief Executive Officer, Enclara Healthcare
In October 2019, Humana and Microsoft announced a seven-year partnership to deliver improved health outcomes and digital solutions for personalized care. According to the co-announcement, the two companies will partner to develop predictive and personalized health care solutions to help members manage health issues using Microsoft’s Azure cloud, Azure artificial intelligence and voice technologies. Microsoft will also serve as Humana’s preferred cloud provider.
Humana Inc. (NYSE: HUM) is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large. More information regarding Humana can be found at humana.com.
About Enclara Healthcare
Enclara Healthcare is a leading solutions provider focused on simplifying care delivery in chronic and complex care patient populations to improve patient experience, quality, and cost. Enclara collaborates with healthcare organizations to drive value-based care through expertise, process, and technology. To learn more about Enclara Healthcare services visit enclarahealthcare.com.