Humana Sheds Gentiva Hospice Stake for $900 Million

Humana said Wednesday it has agreed to sell its minority stake in Gentiva, the hospice and palliative care provider, for $900 million. The deal is expected to close in the third quarter, subject to regulatory approvals.

The buyers are a consortium of investors that Humana did not name in its statement. The company said it will use the proceeds for general corporate purposes.

The sale completes a process Humana started years ago, even before Jim Rechtin took over as chief executive in 2024, to unwind the “non-core” assets it absorbed through the Kindred at Home acquisition. In 2022, the insurer sold a majority interest in the hospice and personal care divisions to private equity firm Clayton, Dubilier & Rice. Those divisions were later restructured and rebranded as Gentiva, which now operates more than 430 locations in 35 states.

Proceeds from the Gentiva sale free up capital as Humana doubles down on its CenterWell healthcare services unit. That business, which covers pharmacy, specialty pharmacy, and related distribution, brought in more than $22 billion in revenue last year out of Humana’s total $129.6 billion, per the insurer’s most recent financial report.

Under Rechtin, CenterWell has pivoted toward higher-growth areas including specialty pharmacy. Earlier this year, CenterWell Pharmacy formed a partnership with Mark Cuban’s Cost Plus Drug Company to develop employer prescription drug programs.

Gentiva remains the nation’s largest end-of-life care provider. Humana will retain no interest in the business after the sale closes. Humana shares traded near $280 in late trading Wednesday, roughly flat on the session.