Humana is in talks with Sarasota, Fla.-based MaxHealth — a primary care network and platform focused on adults and seniors — regarding an acquisition, Bloomberg reported Feb. 12.
According to Bloomberg sources, MaxHealth, owned by private equity firm Arsenal Capital Partners’ Best Value Healthcare, could have been valued at about $1 billion.
Humana President and CEO Jim Rechtin previously said the company is looking to expand its primary care footprint.
“We also hope to soon announce a strategic acquisition in the primary care space,” Mr. Rechtin said on a Feb. 11 earnings call.
In 2025, CenterWell Senior Primary Care, a network of medical offices focused on the Medicare population, saw 100,600 more patients — over 25% growth. That year, Humana acquired The Villages Health, a Florida health system serving The Villages retirement community. Roughly 32,000 of those patients stemmed from the deal.
During the annual enrollment period, Humana also grew individual Medicare Advantage membership by 20%, or 1 million members. To fund these members and some M&A activity, Humana plans to maintain its debt-to-capital ratio and leverage “non-core assets,” CFO Celeste Mellet said on the call.
Health insurers have been under scrutiny for their vertical integration in recent months.
“Whether you’re a blue-blooded capitalist or a card-carrying democratic socialist, I think corporate monopolies are a problem, and this vertical integration is destroying people’s ability to access care,” Rep. Alexandria Ocasio-Cortez, D-N.Y., said during a Jan. 22 congressional hearing with a handful of leading health insurance CEOs.
Sens. Elizabeth Warren, D-Mass., and Josh Hawley, R-Mo., introduced a bill Feb. 10 that would restrict companies from owning both a health insurer or pharmacy benefit manager and a medical provider or management services organization. Those in violation would need to comply within one year.
A Sept. 29 Health Affairs analysis determined insurers using their own providers can inflate medical spending figures and limit their rebate responsibilities, as well. The authors encouraged regulatory policies that would require insurers to disclose these internal payment arrangements.
A more specific case: ASC acquisitions by UnitedHealth Group’s provider arm, Optum, were linked to steep price increases for competing insurers, according to another Health Affairs study, highlighting how vertical integration can influence costs.
Humana declined to comment. Becker’s contacted MaxHealth and Arsenal Capital Partners and will update this story if more information becomes available.
