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Humana to purchase Concentra for $790 million Posted: November 26th, 2010

By Maryalene LaPonsie

Humana health insurance is growing. The company recently announced that it signed a purchase agreement for Concentra, Inc. The deal will cost the insurer $790 million and will allow it to expand its medical services.

Currently a privately held health care company, Concentra offers a range of services including:

  • Physical therapy
  • Urgent care
  • Occupational medicine
  • Wellness services

The company operates more than 300 medical centers in 42 states as well as an additional 240 medical facilities at worksites. Annual revenues for the company are estimated at $800 million.

In a statement, Michael B. McCallister, Humana's chairman of the board and chief executive officer said, "We are excited about the opportunity to acquire a strong stand-alone business that reinforces our core businesses while providing both revenue diversification and opportunities for strategic expansion longer term."

Of Humana's 10.1 million subscribers, approximately 3 million live in close proximity to an existing Concentra facility. "Concentra's focus on evidence-based, cost-effective medical care and a service-driven culture parallels that of Humana and ultimately results in tremendous opportunity across the combined enterprise." James M. Greenwood, Concentra's chief executive officer said when announcing the deal.