Yesterday’s announcement that Humana has signed a definitive agreement to acquire Concentra represents a dynamic shift for Humana, diversifying the company from a healthcare payer to a large provider as well. Perhaps the most interesting component of the transaction to watch will be how Humana can leverage Concentra’s footprint of more than 300 medical centers across the U.S. to grow revenues for both the payer and provider businesses.
As consumerism increasingly impacts the healthcare landscape and individuals have more choices and fewer obstacles for choosing health insurance, health plans are keenly aware they will need to significantly expand their consumer marketing capabilities. Will Humana be able to use Concentra’s clinics as a storefront to sell Medicare Advantage and Prescription Drug Plans to seniors, or individual insurance products for other consumers? Furthermore, how can Humana structure these plans to encourage the use of the Concentra medical centers while saving consumers money?
In addition to potential consumer implications, Humana joins Walgreens and Cerner, as large healthcare entities that have acquired businesses providing onsite health centers at large employer campuses. As the first managed care organization with a large footprint of worksite health centers, it will be interesting to see how Humana can combine onsite services with the company’s provider network and population health offerings to attract additional business from large employers. Concentra’s capabilities in occupational medicine add further employer-focused services that Humana can use to deepen employer relationships. If integrated well, Concentra’s onsite and offsite medical centers, combined with Humana’s telephonic and online population health programs focusing on wellness and behavioral health, could help employers make a material impact on their healthcare costs.
TripleTree will continue to monitor how health plans continue to diversify their businesses through technology and healthcare services in order to stay relevant in the rapidly evolving healthcare landscape.
Have a great Thanksgiving!