BlackRock buys $2.8B CenterWell stake, takes over senior care clinics
What's the deal? BlackRock is buying out the $2.8 billion stake in CenterWellDealroom has a profile for this one. Try Dealroom → held by private equity firm Welsh, Carson, Anderson & Stowe (WCAS)Dealroom has a profile for this one. Try Dealroom →, becoming majority owner of 150 senior primary care clinics. The investment firm will also operate the chain under a management agreement with Humana, which owns CenterWell. The deal is expected to close by the end of the year.
What's the endgame? CenterWell runs more than 350 senior primary care centers across 12 states, built on a value-based model for older patients. BlackRock has agreed to fund new investments in the division, including opening centers and potentially buying out competitors.
Why now? The 150 clinics were developed under a 2022 joint venture between Humana and WCAS to expand CenterWell's reach. Humana is now unwinding that arrangement, which it expects will bring "significant reduction in the liabilities" on its balance sheet.
What changes? CenterWell will continue to operate independently as a Humana subsidiary, and both companies said there will be no disruption to patient care. CenterWell can buy the clinics back from BlackRock starting in 2028, but BlackRock cannot force it to.
That structure differs from the WCAS deal, which carried a "put" provision that could force Humana and CenterWell to buy out their partner's stake. Its absence reduces financial risk for the insurer, Humana said.
"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, president of CenterWell.
The signal: An asset manager stepping in to own and operate a clinic chain shows how deeply institutional capital is moving into senior primary care, an area tied to the growth of Medicare Advantage. For Humana, the move trades a liability-heavy joint venture for a lower-risk partnership while keeping a path back to full ownership.
Read more: healthexec.com
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