BlackRock to buy majority stake in Humana's CenterWell clinics for $2.8B

On October 13, 2026, Humana announced a $2.8 billion joint venture with BlackRock, which will acquire private equity firm Welsh, Carson, Anderson & Stowe's majority stake in nearly 150 CenterWell Senior Primary Care clinics. The deal eliminates a balance sheet put option present in Welsh Carson's contract and provides capital for BlackRock to fund CenterWell's clinic expansion over the next two years, while CenterWell retains management of the locations.

Structure of the BlackRock deal

• ▪Humana said that over the two years following October 2026, BlackRock will provide capital to fund CenterWell's clinic operations, construct new clinics, and pursue strategic acquisitions
• ▪On October 13, 2026, Humana announced a joint venture agreement with BlackRock, under which BlackRock will acquire a majority stake in nearly 150 CenterWell Senior Primary Care clinics in a $2.8 billion transaction expected to close by the end of 2026
• ▪Under the joint venture agreement with BlackRock announced on October 13, 2026, CenterWell will remain a minority owner and continue managing its senior primary care clinics without changes to patient care
• ▪Under the $2.8 billion BlackRock agreement, CenterWell can purchase clinics from the CenterWell joint venture starting in 2028, and if unacquired by the end of 2033, BlackRock may exit by selling the remaining clinics

Financial impact on Humana

• ▪Humana stated on October 13, 2026 that the $2.8 billion joint venture deal with BlackRock is not expected to impact Humana's 2026 earnings forecast
• ▪Humana announced on October 13, 2026 that the $2.8 billion BlackRock joint venture will reduce balance sheet liabilities and unlock capital to support CenterWell's expansion
• ▪Humana anticipates achieving a significantly lower cost of capital under the $2.8 billion BlackRock joint venture due to the increased maturity of the CenterWell business

Buyout of Welsh Carson stake

• ▪Welsh, Carson, Anderson & Stowe established joint ventures with Humana in 2020 and 2022 that helped scale CenterWell into a primary care provider over seven years
• ▪The $2.8 billion BlackRock agreement removes a put option present in Welsh, Carson, Anderson & Stowe's contract that could have forced Humana to buy back clinic equity at a predetermined price
• ▪BlackRock is buying out private equity firm Welsh, Carson, Anderson & Stowe's majority stake in nearly 150 CenterWell clinics, after Welsh Carson invested at least $1.8 billion into the CenterWell venture starting in 2020

Debatable claims

• ▪BlackRock's investment in CenterWell accelerates the financialization of Medicare Advantage care
• ▪Private investment firm backing is essential for expanding senior value-based primary care
• ▪BlackRock's majority ownership of CenterWell clinics risks prioritizing financial returns over senior patient care