Humana Inc. (HUM Quick QuoteTO HUM Free report) signed an agreement to acquire the home hospital provider One Homecare Solutions (onehome) from the private equity group WayPoint Capital Partners.

One Homecare Solutions, based in Miramar, FL, provides home-based services such as nursing, physical therapy, IV care, etc. The transaction is expected to close in the second quarter of 2021. With this transaction, health insurance will enter the home health business further.
In addition, given the current situation, it is the right time to invest in the home health model, which allows patients to be treated from the comfort of their own home.

onehome has been offering Humana members health care since 2015 through its Point of Accountability, which seamlessly integrates with patients, doctors, health plans, etc. in the future. Both companies share the same vision of value-based, enriching medical care at home.

The transaction is in line with the company’s statement in April that it will acquire the remaining 60% stake in Kindred at Home, the nation’s largest provider of home health and hospice services.

These deals definitely make this company, which currently holds Zacks in 3rd place (Hold), a values-based home health care provider nationally. The combination of onehome’s values-based approach and risk-taking ability, Kindred’s medical services and Humana‚Äôs analytical skills and clinical approach is sure to help Humana grow into a leading home health care company.

The company’s series of buyouts has always given the company a growth path. The company recently announced its iCare buyout in Wisconsin last December, expanding its Medicare business.

In April, one of his colleagues, Anthem Inc. (ANTM quick quoteANTME Free report) acquired myNEXUS, Inc., a home care company for payers.

The health insurance industry in particular is facing tremendous growth over the long term, driven by the aging US population, patient desire for independence, and home health insurance as a lower cost treatment option. Industry players should continue to benefit from the US seniors demographics and the need to care for patients with increased visual acuity in a home care setting.

Humana stocks are up 9.8% in a year, lagging theirs Industrya growth of 32%. You can see the full list of current Zacks # 1 Rank (Strong Buy) stocks here.

Image source: Zacks Investment Research

Shares to Consider

Some better valued stocks in the same area are there The common corp. (JYNT quick offerJYNT Free report) and Choose Medical Holdings Corporation (SEM quick quoteSEM Free report), everyone currently holds a Zacks Rank # 2 (Buy).

Joint Corp. and Select Medical Holdings managed to deliver earnings surprises of 199.17% and 245.91%, respectively, for the past four quarters.

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