Key Stats
Humana operates as a health care company offering insurance products and health services across the United States. The company’s business model integrates insurance coverage with clinical care delivery through two main segments.
The Insurance segment provides Medicare Advantage plans, commercial health coverage, and government-sponsored programs including Medicaid and TRICARE. This division serves individual members and employer groups with medical, dental, vision, and supplemental health benefits.
The CenterWell segment delivers healthcare services directly to members and third parties. This includes pharmacy benefit management, primary care centers, home health services, and hospice care. The integrated approach allows Humana to coordinate patient care while managing costs across the healthcare continuum.
Humana History
David A. Jones Sr. and Wendell Cherry founded a nursing home company in Louisville, Kentucky. Each borrowed $1,000 and recruited four friends to raise capital for their first facility.
The company went public as Extendicare Inc. and became the largest nursing home operator in the United States. The stock surged from $8 to $50 within ten months.
Extendicare sold its nursing home chain and began purchasing hospitals, marking a strategic shift in the company’s direction.
The company changed its name to Humana Inc. to reflect its focus on providing more humane healthcare services.
Humana acquired American Medicorp Inc., which doubled the company’s size and accelerated its growth trajectory.
The company established a health insurance division while continuing to operate hospitals across the country.
Humana spun off its hospital operations to create Galen Health Care and transformed into an exclusively health benefits company. The company owned 77 hospitals at the time of the spinoff.
Humana purchased Concentra Inc. for $790 million, returning to direct healthcare delivery through urgent care and physical therapy centers.
Aetna announced plans to acquire Humana for $37 billion, but federal judges blocked the merger on antitrust grounds.
Humana completed acquisition of Kindred at Home for approximately $5.7 billion, becoming the nation’s largest provider of home health and hospice services.
The company announced its exit from the employer-based commercial group insurance market to focus on government-sponsored programs.
Humana Co-founders
David A. Jones Sr. was a lawyer who co-founded Humana in 1961 and served as chairman and CEO throughout most of the company’s history. He led the company through its transformation from nursing homes to hospitals and ultimately to health insurance, retiring in 2005 at age 73.
Wendell Cherry was a lawyer and entrepreneur who co-founded Humana with David Jones and served as president and chief operating officer. Born in rural Kentucky, Cherry graduated from the University of Kentucky Law School in 1959 before joining forces with Jones to build one of America’s largest healthcare companies.
Humana Competitors
Humana faces competition from several major health insurance providers in the United States. The competitive landscape includes companies with diversified healthcare businesses that span insurance, pharmacy benefits, and care delivery services.
| Company | Description |
|---|---|
| UnitedHealth Group | Largest healthcare company globally with diversified business through UnitedHealthcare and Optum divisions |
| Elevance Health | Major health insurance provider operating Blue Cross Blue Shield plans across multiple states |
| Cigna Corporation | Global health services company offering medical, dental, disability, and life insurance products |
| Centene Corporation | Specialized in government-sponsored healthcare programs including Medicaid and Medicare Advantage |
| CVS Health | Integrated healthcare company combining insurance through Aetna with retail pharmacy operations |
| Molina Healthcare | Focused on government-funded healthcare programs for underserved populations |
| Kaiser Permanente | Integrated managed care organization operating hospitals and health plans |
| Oscar Health | Technology-focused health insurance provider targeting individual and small group markets |
| Clover Health | Medicare Advantage provider using technology to improve clinical decision-making |
| WellCare Health Plans | Specializes in government-sponsored managed care services for Medicare and Medicaid beneficiaries |
Humana Revenue
Humana’s revenue growth reflects the company’s expansion in government-sponsored health programs. The organization has achieved consistent revenue increases over the past decade through membership growth and improved premium rates.
Humana Market Cap
The company’s market valuation has fluctuated based on healthcare industry trends and regulatory changes. Humana’s market capitalization reflects investor confidence in its Medicare Advantage business model and growth strategy.
Humana Acquisitions
Humana has pursued strategic acquisitions to expand its capabilities in home healthcare and value-based care delivery. The company’s acquisition strategy focuses on integrating clinical services with insurance operations to improve patient outcomes while reducing costs.
The 1978 acquisition of American Medicorp Inc. represented a pivotal moment in Humana’s early growth, immediately doubling the company’s size and establishing it as a major hospital operator. This deal laid the foundation for Humana’s expansion throughout the 1980s when it became the world’s largest hospital company.
In 2010, Humana acquired Concentra Inc. for $790 million, obtaining a network of over 300 medical centers providing urgent care, occupational medicine, and physical therapy services. This acquisition marked Humana’s return to direct healthcare delivery after spinning off hospitals in the 1990s. The company later sold Concentra to private equity in 2015 for approximately $1 billion.
The 2018 transaction involving Kindred Healthcare proved transformational for Humana’s care delivery strategy. Humana partnered with private equity firms to acquire Kindred, gaining a 40% stake in Kindred at Home for roughly $800 million. In 2021, Humana completed the purchase of the remaining 60% interest for approximately $5.7 billion, creating the nation’s largest home health and hospice provider.
Humana acquired Enclara Healthcare from Consonance Capital Partners in December 2019, adding specialized pharmacy services for hospice and palliative care. This acquisition strengthened Humana’s ability to serve high-acuity patients in home settings with integrated pharmacy support.
Additional acquisitions have included smaller healthcare technology companies and regional health plan operators. Humana acquired Inclusa in 2022, expanding its managed long-term services and supports capabilities in Wisconsin. The company also purchased onehome in 2021, adding home-based primary care services to complement its growing CenterWell platform. These targeted acquisitions support Humana’s strategy of coordinating care across multiple settings while managing total medical costs for Medicare Advantage members.
FAQs
When was Humana founded?
Humana was founded in 1961 by lawyers David A. Jones Sr. and Wendell Cherry as a nursing home company in Louisville, Kentucky. The company went public in 1968.
What does Humana specialize in?
Humana specializes in government-sponsored health insurance programs, particularly Medicare Advantage plans. The company also provides Medicaid, TRICARE, commercial insurance, and integrated healthcare services through its CenterWell division.
Who are Humana’s main competitors?
Humana’s main competitors include UnitedHealth Group, Elevance Health, Cigna, Centene Corporation, CVS Health, and Kaiser Permanente in the health insurance and managed care markets.
How many members does Humana serve?
As of December 2024, Humana’s Insurance segment serves 16.3 million members. The company focuses primarily on Medicare Advantage, serving millions of senior citizens across the United States.
Where is Humana headquartered?
Humana is headquartered in Louisville, Kentucky, where it was originally founded in 1961. The company maintains its 27-story corporate headquarters building at 500 West Main Street in downtown Louisville.
