Humana Partners with BlackRock in $2.8 Billion CenterWell Primary Care Joint Venture

Key numbers

Deal value	$2.8B
Share of market cap	5.4%
Share of annual revenue	2.2%

Key highlights

• BlackRock to acquire the existing equity stake from Welsh, Carson, Anderson & Stowe for approximately $2.8 billion
• Agreement covers a network of nearly 150 CenterWell clinics, maintaining CenterWell as the operator
• Removal of previous put option arrangements is expected to significantly reduce balance sheet liabilities
• Humana gains a call option to begin purchasing clinics from the joint venture starting in 2028
• Management affirmed FY 2026 Adjusted EPS guidance of at least $9.00 per share

What Is the Partnership?

Humana has entered into a new joint venture with HPS Investment Partners, a subsidiary of BlackRock, to manage an existing network of nearly 150 CenterWell Senior Primary Care clinics. Under the terms, BlackRock will acquire the equity stake previously held by Welsh, Carson, Anderson & Stowe for approximately $2.8 billion. While BlackRock holds the majority stake, CenterWell will continue to manage and operate all clinics within the venture. The agreement includes a path for Humana to reclaim full ownership, with call options beginning in 2028. If Humana does not acquire all clinics by 2033, BlackRock retains the right to initiate a sale process.

Partner Profile

BlackRock stands as the world's largest asset manager, providing substantial capital at scale and deep expertise in private financing through its HPS Investment Partners arm. This transaction marks Humana's second significant engagement with BlackRock in 2026, following a definitive agreement to divest Humana’s minority interest in Gentiva to a consortium led by the firm. By transitioning the clinic portfolio to a more mature investment partner, Humana leverages BlackRock's financial capacity to support ongoing clinic expansion and strategic acquisitions without the capital intensity of a traditional subsidiary model.

What It Unlocks

• Enhanced balance sheet efficiency through the removal of legacy put option liabilities
• Significant reduction in the cost of capital reflecting the clinical network's operational maturity
• Access to additional growth capital for establishing new clinics and strategic acquisitions
• Financial flexibility to maintain CenterWell’s status as a leading senior-focused primary care provider
• Stabilization of long-term capital structures through a derivative instrument recorded at fair value

Business Overview

Humana is a leading health insurance provider in the United States, specializing in Medicare Advantage plans and value-based healthcare delivery. Its CenterWell segment represents the nation's largest senior-focused primary care provider, integrating primary care, home health, and pharmacy services. The company has aggressively expanded its value-based ecosystem through recent partnerships with Vori Health and HOPCo for musculoskeletal care, as well as data exchange collaborations with Providence. This latest move with BlackRock aligns with Humana's strategy to scale its clinical footprint while optimizing capital allocation and shareholder returns.

Financial Context

Despite the structural shifts in its clinical joint ventures, Humana affirmed its full-year 2026 guidance of at least $9.00 in Adjusted EPS. The company reported annual revenue of $129.7 billion and currently maintains a price-to-earnings ratio of 41.1x. Market technicals show the stock trading at 433.5 with a Relative Strength Index of 66.7, reflecting positive momentum over the last quarter. While GAAP EPS may fluctuate due to value creation initiatives and the accounting of the new derivative instrument, the reduction in put option liabilities is expected to provide a more stable long-term financial foundation.

Down 3.0% since our story on 13 Oct: $433.50 when we broke it → $420.38 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$407.02
15 Sep	$396.62
16 Sep	$384.72
17 Sep	$384.52
18 Sep	$386.22
21 Sep	$378.58
22 Sep	$372.00
23 Sep	$374.78
24 Sep	$380.32
25 Sep	$397.93
28 Sep	$389.63
29 Sep	$386.87
30 Sep	$381.57
1 Oct	$379.68
2 Oct	$388.36
5 Oct	$404.07
6 Oct	$404.27
7 Oct	$396.51
8 Oct	$387.12
9 Oct	$431.87
12 Oct	$433.50
13 Oct	$420.38

HUMANA INC · financial snapshot

Share price	$433.50
Market cap	$52.1B
Revenue (annual)	$129.7B
P/E (TTM)	41.1×
1-month price change	+8.18%
Sector	HealthcareHealthcare Plans

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.