Humana, a leading managed health care company, was founded by David A. Jones Sr. in 1961 as a nursing home company called Extendicare.
The company was founded by David A. Jones, Sr. and Wendell Cherry in 1961 and is headquartered in Louisville, KY.“
The company was founded by David A. Jones, Sr. and Wendell Cherry as a nursing home company in 1961.
In 1961 two lawyers in Louisville, Kentucky, built a nursing home, pledging $1,000 apiece together with four friends.
Slightly ahead of the pack in what was to become the most rapidly expanding sector of the nation's economy, Jones and Cherry reincorporated their venture in 1961 and sold stock for seven years to finance further growth.
Lawyers David A. Jones Sr. and Wendell Cherry founded a nursing home company in 1961.
Extendicare acquired its first hospital in late 1968, realizing it could apply the same business practices it had developed for operating nursing homes.
The company, known in 1968 as Extendicare Inc., became the largest nursing home company in the United States.
The hospitals proved so successful that Extendicare divested all of its nursing homes in 1972.
In 1972, Jones and Cherry sold the nursing home chain, to purchase hospitals.
In 1974, the partners changed the corporate name to Humana Inc.
Humana experienced growth period in the years that followed, both organically and through the takeover of American Medicorp Inc. in 1978, which doubled the company’s size.
Doubled Size Through 1978 Acquisition of American Medicorp
As the nation's third largest hospital-management chain in 1978, Humana committed a bold act: it acquired the number two chain, American Medicorp, Inc.
To build its medical reputation, Humana established a Centers for Excellence program in 1982 for the purpose of specialty care.
From the onset of federal policies in 1983, with private insurers following suit, the industry changed drastically.
Began to Offer Health Plans in 1984
Early in 1984, Humana launched Humana Health Care Plans, to offer insurance plans with attractively low premiums and punitive deductibles for patients who used rival hospitals.
In fact, by this time, a rancor had developed between medical professionals and the business forces behind the cost wars. It was assumed policyholders would use Humana hospitals, but in 1986, as losses began to mount, it was found that only 46 percent of Humana's Care Plus group-plan members were using its facilities.
In 1987, with founders Jones and Cherry still at the helm, Humana worked to right its insurance plans.
By 1989, after five years of losses, Humana's health-plan division made $4 million, its first operating profit.
In October 1990 Humana announced that it had agreed to acquire Chicago-based Michael Reese Health Plan Inc. and Michael Reese Hospital and Medical Center.
In 1991 cofounder Cherry died.
Humana spun off its hospital operations from the health insurance operations in 1993, creating Galen Health Care, which then merged with Columbia/HCA.
With its hospitals continuing to post declining profits because of industry-wide cost-containment efforts and falling admissions of full-paying patients (those not covered through government-sponsored plans), Humana decided in 1993 to stake its future on managed healthcare plans.
In 1993, Humana had become the largest hospital operator in the country, owning 77 hospitals.
In 1994 Humana spent $180 million to acquire Group Health Association, a 125,000-member HMO in Washington, D.C., and CareNetwork, an HMO in Milwaukee.
The company in October 1995 acquired EMPHESYS Financial Group, Inc. for $650 million.
Thus by the end of 1995 Humana had boosted its overall plan membership to 3.8 million and its revenues to $4.7 billion.
Gregory H. Wolf--who had been senior vice-president of sales and marketing and had come to Humana from EMPHESYS, where he had been president and COO&mdashøok over as president of Humana in September 1996.
As part of this restructuring, Humana recorded a $200 million pretax charge for the second quarter of 1996, leading to net income for the year of only $12 million, compared to $190 million for the previous year.
By mid-1996, however, it appeared that Humana had grown too fast.
In August 1997 Humana announced it would sell its HMO in California.
In October 1997 Humana bought ChoiceCare Corporation for about $250 million in cash.
He added the CEO title as well in December 1997, with Jones remaining chairman.
Humana made two significant acquisitions in late 1997.
During 1997 the company sold its last remaining hospital and its pharmacy benefits management subsidiary.
In late May 1998 Humana agreed to merge with United HealthCare Corporation to create the largest managed-care company in the United States in terms of plan participants (the merged entity would operate under the United HealthCare name).
In 1998, Humana and UnitedHealth Group (UNH) planned to merge in a deal worth $5.5 billion, but the move failed when UnitedHealth Group posted almost $1 billion in quarterly losses that same year.
United Healthcare attempted to acquire Humana in 1998.
By early 1998 it had committed to selling all of its Humana health centers.
In 1998, one year after Jones had stepped aside as CEO, United Healthcare made an unsuccessful attempt to acquire Humana.
In 2001, Humana entered into an innovative joint venture with Navigy to create an online web portal called availity.com, enabling physicians and health providers to conduct business with the two companies.
In 2001, Humana partnered with Navigy, Inc., a subsidiary of Blue Cross and Blue Shield of Florida, Inc., to launch Availity.
In 2001, Humana was a cofounder of Availity.
In 2005, Humana entered into a partnership with Virgin Group, offering financial incentives to those of its insured who adopted a healthy lifestyle.
In 2005, Humana entered into a business partnership with Virgin Group, offering financial incentives to members for healthy behavior, such as regular exercise.
On November 16, 2006, The Centers for Disease Control and Prevention (CDC) and Humana Inc. entered into a partnership with the aim of expanding on traditional private-sector approaches to population health management.
On November 16, 2006, the Centers for Disease Control and Prevention (CDC) and Humana Inc. partnered to expand on traditional private-sector approaches to population health management.
In 2006, Humana launched RightSource, a nationwide pharmacy business.
In 2006, Humana launched an education campaign to market Medicare Advantage (MA) and Prescription Drug Plans (PDP) nationwide to Medicare eligible consumers, following the passage of the Medicare modernization act.
Humana also launched RightSource, a national mail-order retail pharmacy business in 2006.
In 2006, Humana launched an education campaign to market Medicare Advantage (MA) and Prescription Drug Plans (PDP) nationwide to Medicare-eligible consumers, following the passage of the Medicare modernization act.
In March 2008, Fortune Magazine named Humana one of the top five “most admired healthcare companies in the US.”
In its March 2008 issue, Fortune Magazine named Humana one of the Top 5 Most Admired Healthcare Companies in the United States.
In March 2008, Fortune Magazine named Humana one of the Top 5 Most Admired Healthcare Companies in the United States.
In 2010, Humana bought Texas-based Concentra Inc., which owns urgent-care and physical therapy centers, for $790 million, effectively returning to healthcare services.
In May 2011, Humana announced that they would be using mobileStorm to allow transmission of protected health information to patients.
In May 2011, Humana announced it would be using mobileStorm to transmit protected health information to patients.
In March 2015, Humana announced the sale of Concentra to private equity firm Welsh, Carson, Anderson & Stowe and Select Medical Holdings Corporation for about $1 billion, with proceeds to fund a "$2 billion share buyback program and other corporate spending."
In February 2017, Aetna Inc. and Humana Inc. quashed a $34 billion merger agreement after judges ruled against the merger for a second time.
In July 2018, Humana joined two private equity firms in the acquisition of Kindred Healthcare.
In August 2018, Humana announced the creation of a digital health and analytics division called Humana Studio H.
In December 2019, the company announced it would acquire Enclara Healthcare from Consonance Capital Partners and Enclara management.
|Company Name||Founded Date||Revenue||Employee Size||Job Openings|
WellCare Health Plans1985
Community Health Systems1985
Brookdale Senior Living1978
Coventry Health Care of Virginia,1976