Humana has signed a definitive agreement to acquire One Homecare Solutions (“onehome”) from WayPoint Capital Partners (WayPoint), the private equity affiliate of a New York-based family investment office. The acquisition will further advance Humana’s strategy to build a value-based home health offering. onehome is a provider of a variety of home-based services, as well as a convener of home health services stakeholders and a care and risk manager. onehome has pioneered a valued-based model in Florida and Texas, and has served Humana members since 2015.
onehome’s model creates one integrated point of accountability that coordinates the needs of patients, physicians, hospitals and health plans for home-based patient care. onehome currently manages a range of post-acute needs including infusion care, nursing, occupational therapy, physical therapy and durable medical equipment (DME) services at patients’ homes, as well as appropriate site of care placement through its skilled nursing facility (SNF) at home programs.
The acquisition of onehome aligns with Humana’s recent announcement to fully acquire and integrate Kindred at Home, and provides a number of key capabilities that will enable Humana to more effectively deliver value-based home health at a national scale:
- onehome has significant experience with risk-based contracting, and has fully-capitated models in place in Florida and Texas that will provide valuable insights for the expansion of similar contracting in other states.
- onehome has developed fully-dedicated network management and utilization management systems that can create greater efficiencies for the administration of in-home patient visits.
- onehome owns and manages home-based DME and infusion services for members in its core geographies that can be expanded to other markets and deliver more simplified coordination of these services for patients and providers.
- onehome’s ownership of DME services can deliver greater value and better outcomes through reduced waste and more consistent equipment utilization by members.
“At Humana, we are implementing a strategy to build a new Value-Based Home Health model that will improve patient outcomes, increase satisfaction for patients and providers, and provide greater value for health plan partners,” said Susan Diamond, Segment President for Humana’s Home Business and Humana’s Interim Chief Financial Officer. “The acquisition of onehome is a key component of that strategy. It complements our recent announcement to fully acquire and integrate Kindred at Home, and brings together additional capabilities that will allow Humana to deliver value-based home health at a national scale. By combining onehome’s value-based approach with Kindred’s home health services and Humana’s analytical capabilities and clinical expertise, we believe we can create a transformational value-based offering to serve more people, including non-Humana plan members, nationwide.”
“Since first launching onehome in 2013, we have had a front row seat at the care-in-the-home revolution that is driven by our society’s desire to positively impact clinical outcomes, affordability, and patient experience,” said Ramon Falero, Chief Executive Officer and Co-Founder of onehome. “We built the onehome model with a focus on integrating all key home-based patient care delivery needs with risk-taking capabilities and robust technology. We have had the privilege of serving millions of patients with this model – the need for which has only increased during the COVID-19 pandemic. We are honored to now have the opportunity to expand our model as part of the Humana team, with whom we share the mission of bringing healing home.”
“We are proud of the longstanding partnership between onehome and Humana, and their shared vision to offer value-based care in the home,” said Philip Edmunds, Partner at WayPoint Capital Partners. “Through significant investment in clinical innovation and a fully integrated delivery system for post-acute patient needs, onehome enables better outcomes for patients recovering at home alongside greater levels of coordination and insight for health plan partners.”
Financial terms were not disclosed. The acquisition is expected to close in the second quarter of 2021 and is subject to customary state and federal regulatory approvals. The company does not anticipate a material impact to 2021 earnings from this pending transaction.
For Humana, Ernst & Young is acting as financial advisor and Fried, Frank, Harris, Shriver & Jacobson LLP is acting as legal advisor. For onehome, Alvarez & Marsal and MTS Health Partners L.P. are acting as financial advisors and Winston & Strawn LLP is acting as legal advisor.