Humana strikes BlackRock joint venture for nearly 150 CenterWell clinics, drops put option, affirms $9 EPS floor

Humana is swapping out the financial partner behind nearly 150 of its CenterWell Senior Primary Care clinics. The company said Tuesday it entered a new joint venture agreement with funds and accounts managed by HPS Investment Partners, part of BlackRock, to manage and operate those clinics.

BlackRock will buy the equity stake currently held by funds affiliated with Welsh, Carson, Anderson & Stowe, valued at about $2.8 billion, according to a press release Humana furnished to regulators.

The put option goes away

The new venture will be majority owned by BlackRock, with CenterWell as the minority owner. CenterWell will keep managing and operating every clinic in it.

The key change for Humana's balance sheet: the new arrangement has no put option that BlackRock can exercise. Humana said it expects "a significant reduction in the liabilities" tied to the clinics compared with the put arrangements in the existing WCAS joint ventures.

In exchange, CenterWell agreed to certain minimum return protections for BlackRock. That creates a derivative that Humana will carry on its balance sheet at fair value. Overall, Humana said it expects "a significantly lower cost of capital."

Buyback rights and an exit clock

Beginning in 2028, CenterWell can choose to buy clinics back from the venture. If it hasn't bought all of them by the end of 2033, BlackRock can exit through a sale process, with CenterWell holding the right to make the first offer.

Humana said the venture expects to deploy additional capital over the next two years to fund operations, open new clinics and make acquisitions. It is Humana's second deal with BlackRock this year, after an agreement to divest all or substantially all of its minority interest in Gentiva to a consortium of investors that includes BlackRock.

Guidance holds

The transaction is expected to close in the fourth quarter of 2026, pending regulatory approvals, and is not expected to materially affect 2026 adjusted earnings guidance. Humana affirmed its forecast of at least $9.00 in adjusted EPS for 2026.

The company warned it does expect potential changes to its 2026 GAAP EPS guidance, citing strategic initiatives including the liability reduction from removing the put option.

By the numbers

• Clinics in the new venture: nearly 150
• WCAS equity stake BlackRock is buying: about $2.8 billion
• CenterWell buyback option starts: 2028
• BlackRock exit right: after end of 2033
• 2026 adjusted EPS guidance: at least $9.00 (affirmed)

Sources

1. Humana Inc., Form 8-K (Item 7.01), filed Oct. 13, 2026 (accession 0000049071-26-000060)
2. Humana Inc., Exhibit 99.1 press release, "Humana Announces New Strategic Joint Venture with BlackRock to Manage CenterWell Senior Primary Care Clinics," Oct. 13, 2026

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.