Humana expects major liability reduction on new BlackRock clinic JV
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Humana (HUM) said it has entered a new joint venture arrangement with funds and accounts managed by HPS Investment Partners, a subsidiary of BlackRock (BLK), to manage and operate an existing network of CenterWell Senior Primary Care clinics.
The clinic currently sit within joint ventures owned by funds affiliated with Welsh, Carson, Anderson & Stowe (WCAS) and CenterWell
Under the agreement, BlackRock will acquire the equity stake held by funds affiliated with WCAS, replacing CenterWell’s existing joint ventures with WCAS. The new arrangement does not include a put option exercisable by BlackRock and will give rise to a derivative instrument that will be recorded on Humana’s (HUM) balance sheet at fair value.
Humana expects a significant reduction in the liabilities on its balance sheet associated with the new arrangement compared to the put arrangements for the existing joint ventures.
CenterWell will have the option to begin acquiring clinics from the joint venture in 2028. If it has not acquired all the clinics by the end of 2033, BlackRock can initiate a sale process for the remaining clinics, subject to CenterWell’s right to make the first offer.
The deal is expected to close in the fourt quarter of 2026.
Separately, Humana reaffirmed its 2026 adjusted earnings guidance of at least $9.00 per share, consistent with its previous outlook.
HUM shares were up 1.5% premarket.
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