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Humana Partners With BlackRock for CenterWell Clinics and Reaffirms 2026 Earnings Guidance

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HUM$433.50 0.38%

Humana Inc. (HUM) has formed a new joint venture with funds managed by BlackRock to manage nearly 150 CenterWell Senior Primary Care clinics. Under the agreement, BlackRock funds will hold a majority stake in the partnership, replacing Welsh, Carson, Anderson & Stowe. CenterWell will retain a minority ownership position and continue running daily operations at the centers while gaining access to capital for growth.

The restructuring removes an existing put option from Welsh, Carson, Anderson & Stowe, creates a fair-value derivative, and significantly lowers related liabilities on Humana's balance sheet. Additionally, the healthcare provider reaffirmed its full-year 2026 adjusted earnings target of at least $9.00 per share, giving investors clarity on its financial outlook as the deal restructures clinic funding.

Looking ahead, CenterWell holds the option to start buying clinics back from the joint venture beginning in 2028. After 2033, BlackRock will have the ability to initiate a sale process for any remaining clinics in the portfolio. Investors will also monitor the completion of the transaction, as the final GAAP earnings per share reconciliation remains pending financial close.

Key points

  • Humana Inc. partnered with BlackRock funds to manage roughly 150 CenterWell Senior Primary Care clinics.
  • BlackRock will own the majority of the joint venture, while CenterWell stays on as manager and minority owner.
  • The deal replaces Welsh, Carson, Anderson & Stowe, eliminating a put option and materially reducing balance sheet liabilities.
  • Humana reaffirmed its full-year 2026 adjusted earnings per share guidance of at least $9.00.
  • CenterWell may start purchasing clinics from the venture in 2028, with BlackRock able to force a sale process after 2033.

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Questions and answers

What is the new joint venture between Humana and BlackRock?

BlackRock funds and Humana formed a joint venture to manage nearly 150 CenterWell Senior Primary Care clinics, with BlackRock holding a majority stake and CenterWell serving as manager and minority owner.

What is Humana's earnings per share guidance for 2026?

Humana reaffirmed its full-year 2026 adjusted earnings per share guidance of at least $9.00. Reconciliation to GAAP earnings per share is pending financial close.

Can CenterWell buy back the clinics from BlackRock?

Yes, CenterWell has the option to begin purchasing clinics from the joint venture starting in 2028. After 2033, BlackRock can require a sale process for any remaining clinics.