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