Humana Takes Hit in 2024 Amid Surge in Medical Costs
Humana announced its earnings and revenue for the fourth quarter of 2023 on January 25, 2024. The company reported $106.4 billion in revenue and $2.5 billion in profit for the full year 2023. While revenue grew about 15% compared to 2022, when it reported $92.9 billion, profits declined slightly year-over-year from $2.8 billion. The health insurer is bracing for an “unprecedented” surge in medical costs, impacting its earnings throughout 2024 and also putting its 2025 profit target of $37 per share out of reach. Medical costs for health insurers were elevated during 2023, and picked up even more during Q4 as people, especially older adults, returned to the hospitals... Read More »
Cigna Calls Off Humana Merger, Plans Big Stock Buyback
The Wall Street Journal had originally reported on November 29 that payer giants Cigna and Humana are exploring a merger that could shake up the power dynamics of the industry, citing people familiar with the matter. The two companies were discussing an all-cash deal that would have been finalized by the end of the year. However, Cigna and Humana have now ended merger talks amid concern from investors and an inability to pin down key financial terms, according to a new Wall Street Journal report. If it had gone through, the merger would have created a $140 billion industry giant, positioning itself as the largest player in the Managed Care space. Instead of pursuing the merger,... Read More »
Q2:23 Thematic Earnings Roundup
This earnings season has provided us with insights into how various publicly traded healthcare companies are navigating the current landscape. Let’s delve into the trends and outcomes that defined the second quarter of 2023. The Home Health & Hospice Market: The Erosion of Medicare Fee-For-Service The Home Health & Hospice (HH&H) market has been volatile of late, with companies like Amedisys Inc. (NASDAQ: AMED) reporting a significant shortfall in earnings and a decline in revenue compared to the same period last year. Amedisys reported a financial loss in the second quarter of $80.3 million, after reporting a profit in the same 2022 period. A significant portion of this... Read More »
How Ascension and Kaiser are Responding to Physician Practice Consolidation
M&A activity in physician practices continues to have a significant presence in the healthcare landscape as practices compete against each other for market control. To make their mark on patients and grow, physician groups are forced to carve out a distinctive place in the industry. According to data captured in the LevinPro HC database, there were 51 Physician Medical Groups (PMG) transactions announced during January 2023, a 35% decline from January 2022 when 79 PMG deals were reported. The dental specialty had the most transactions, representing approximately 24% of all January 2023 PMG acquisitions, an increase from January 2022 when dental represented more than 20% of the PMG... Read More »Schedule a demo
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