Humana, BlackRock Strike $2.8 Bn Deal for CenterWell Clinics

According to Humana’s announcement, the new partnership is expected to provide additional growth capital, improve financial flexibility and lower the cost of capital for the insurer.

Humana has agreed to enter a joint venture with BlackRock to operate and expand its CenterWell senior primary care clinics, with BlackRock’s HPS Investment Partners unit acquiring Welsh, Carson, Anderson & Stowe’s (WCAS) equity stake for approximately $2.8 billion. The transaction will replace Humana’s existing joint venture arrangement with WCAS, which covers about 150 CenterWell locations.

According to Humana’s announcement, the new partnership is expected to provide additional growth capital, improve financial flexibility and lower the cost of capital for the insurer.

CenterWell will continue managing the clinics’ day-to-day operations, with Humana stating that the transition is not expected to disrupt patient care or reduce care quality.

Joint Venture to Support Clinic Expansion

The companies expect to spend the next two years deploying capital to support existing CenterWell clinics, establish new locations and expand the network through acquisitions.

Humana will also have the option to repurchase clinics held by the joint venture beginning in 2028. If the insurer has not repurchased all the clinics by 2033, BlackRock will have the option to exit the partnership and sell its remaining holdings. CenterWell will have the first opportunity to make an offer for those locations.

Humana said it expects the new arrangement to deliver a significantly lower cost of capital, reflecting the maturity of the CenterWell business.

Humana Maintains Operational Control

CenterWell will retain responsibility for clinic operations under the new arrangement. The network focuses on senior primary care and a value-based care model, which links healthcare delivery and reimbursement to patient outcomes and quality measures.

“We look forward to this new venture with BlackRock as our partner, while our growing network of CenterWell clinics remains dedicated to serving patients with our unique model of senior-focused, value-based care,” said Sanjay Shetty, M.D., president of CenterWell.

Shetty also acknowledged WCAS’s contribution to the business over the past seven years, crediting the partnership with helping CenterWell grow.

Second Humana–BlackRock Transaction This Year

The deal represents Humana’s second transaction involving BlackRock in 2026. The insurer is also preparing to sell its stake in hospice provider Gentiva to a group of investors that includes BlackRock.

The CenterWell transaction is expected to close in the fourth quarter of 2026. Humana does not expect the deal to affect its 2026 earnings guidance.

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