Commentary

2010

Selected commentary from the PHM Emerging Markets Healthcare Monitor is largely embargoed for a time per publication policies.  Other commentary by date.

Humana Acquires Healthcare Provider 

November, 2010 

We are not impressed with this move.

Human has announced its plans to acquire Concentra, an occupational medicine, urgent care, and physical therapy provider in the US. 

Humana CEO Michael McCallister claims the move “reinforces our core businesses…”

Unfortunately, we’ve seen this picture before and it isn’t pretty. 

Health insurance companies seem to have an inferiority complex, the world over.  Not content to focus on their actual core business, which is insurance, too many companies try to mash-up their growth strategies.

Over the years such mash ups have included hospital ownership, physician practices, out-patient surgical centers, disease management, and so on. 

Humana claims their competitors are diversifying, like CIGNA’s move to expand their international business.  But CIGNA’s move is an expansion of their insurance business.

We would much rather see Humana put its energies and resources into growing its “core competencies,” including its life insurance and Availity lines………….HK 

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