Humana Inc. (NYSE:HUM) Q1 2018 Earnings Conference Call Transcript

May 02, 2018 • 09:00 am ET

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Humana Inc. (NYSE:HUM) Q1 2018 Earnings Conference Call Transcript

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Executive
Bruce D. Broussard

brings our total owned JV and alliance clinics to 224, including 138 in Florida.

With FPG, we advanced our payer-agnostic primary care strategy, and we continue to look for options to accelerate capability development and geographic expansion of our value-based primary care and MSO support models. We also continued to advance our strategy to integrate clinical programs that intersect healthcare and lifestyle, including in the home, where our Kindred transaction will be an accelerant of our strategy. The Kindred shareholders recently approved the Kindred at Home transaction, and we have been steadfastly moving forward with the development of the integrated clinical model.

One benefit of the Kindred at Home transaction structure that it allows us to focus on advancing our care models and associated impact on lowering the cost of care. We are beginning to develop new clinical models, moving from reactive, point-in-time, triggered-based models of post-acute intervention to proactive, always-on models that leverage moments of influence for our members, including through Kindred at Home's care delivery capabilities. They are focused on in-home clinical and tele-health capabilities, including condition-specific best practices and robust clinical pathways.

We can improve the quality of care by using data analytics to predict when a member is at risk for an acute event and using that data to arm the physician and in-home clinicians with comprehensive view of the member. As a result, we believe we can prevent an unnecessary hospital admission or an emergency room visit.

We are creating test-and-learn pilots for a subset of Humana members in certain markets that we plan to launch when the transaction closes. Some of the initiatives we are assessing include, improving the time to start of home healthcare by reduced administrative and other barriers, improving communication with the primary care physician, and seamless medication reconciliation and access to Humana pharmacists as well as other Humana resources and community support.

In addition, leveraging our partnership with our private equity partners, TPG and Welsh, Carson, Anderson & Stowe, together we entered into an agreement to acquire Curo Health Services, a leading hospice operator. Upon closing of the transaction, which we expect to occur subsequent to the closing of the Kindred transaction, we intend to merge Curo with Kindred at Home. Kindred at Home is the largest home health provider in the nation, and combined with Curo, would be the largest hospice operator in the nation.

Curo brings highly capable management team and a tech-enabled centralized model for hospice care. By combining its strengths with those of Kindred at Home, patients will benefit from a better healthcare experience as their care team, physicians, social workers, family members, and caregivers help them navigate the continuum of home health, palliative care and hospice in an integrated fashion.

Turning to Medicaid, I'd like to thank our talented and dedicated Medicaid associates. As a result of their tremendous efforts, we received a notice of intent to be awarded a comprehensive Medicaid contract under Florida's Statewide Managed Medicaid program in 10 of the State's 11