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In yet another example of an insurer getting into the provider business to improve outcomes and control costs, Humana has acquired Family Physicians Group in Florida.
Humana is actively expanding its primary care model and is committed to creating a national footprint of high-performing, senior-focused primary care physicians, said Renee Buckingham, Humana's segment president, Care Delivery.
"FPG advances this strategy in Central Florida," Buckingham said.
Family Physicians Group is among the largest at-risk providers serving Medicare Advantage and managed Medicaid HMO patients in the Orlando area. It has 22 clinics in Lake, Orange, Osceola and Seminole counties.
The acquisition advances Humana's strategy of helping physicians and clinicians evolve from treating health episodically to managing health holistically, the insurer said. Physicians play a critical role in achieving improved health outcomes for patients, reducing medical expenses and transforming healthcare nationally.
FPG CEO Betty Assapimonwait and her leadership team will continue to operate FPG as a payer-agnostic physician group serving multiple health plans, Humana said.
FPG has over 22,000 Medicare Advantage patients, including nearly 4,000 Humana members and over 21,000 patients in Medicaid, Medicare fee-for-service and commercial plans.
Its expertise in caring for seniors with chronic conditions aligns with Humana's aim of serving Medicare, Medicaid and commercial members, Buckingham said.
"Family Physicians Group has a long history of providing integrated, value-based care to the patients they serve throughout the Greater Orlando market," Buckingham said. "We believe their payer-agnostic model and focus on value based care makes FPG an ideal fit to anchor our primary care business in Orlando."
Recent examples of payers diving into the provider space include UnitedHealth Group's Optum buying DaVita Medical Group, OptumCare's plan to buy Reliant Medical Group and BayCare Health System's partnership with Lumeris on a Medicare Advantage plan in Florida.
Financial terms of the Humana, FPG transaction, completed on April 10, were not disclosed. Humana said the acquisition is not expected to have a material impact on its 2018 financial guidance.