Humana is closing most of its SeniorBridge home care facilities by year’s end, a spokesperson said Tuesday.
When Humana acquired SeniorBridge in 2012, it said the asset would help the company serve the growing population of older people. Now, Humana is all but ending the home care operation as part of a reorganization plan that emphasizes the Medicare Advantage business and cost-cutting efforts.
SeniorBridge offers services at 23 centers in nine states. The facilities in Arizona, Connecticut, Florida, Massachusetts, New Jersey, Ohio, Texas and Virginia will close, while seven sites in New York will remain in operation “until further notice,” the Humana spokesperson wrote in an email.
“We introduced a $1 billion value creation initiative earlier this year to increase our investment in our Medicare Advantage products and achieve greater organizational efficiencies that better meet the needs of our evolving business,” the spokesperson wrote.
Humana announced the restructuring plan in February after its Medicare Advantage segment underperformed during open enrollment last year. In April, Humana announced it would sell a majority stake in the hospice branch of Kindred at Home to a private equity firm.
Humana is the nation’s second-largest Medicare Advantage insurer, with over 5 million members, behind UnitedHealthcare. The company advised investors this month that it expects Medicare Advantage membership to increase by 325,000 to 400,000 enrollees, or 7.1%-8.7%, next year.