The deal will likely boost the firm’s footprint in the primary care industry.

Humana (NYSE: HUM), the U.S. insurance giant, has launched a joint venture with a private equity firm. The agreement will see Humana launch new primary-care centers for Medicare Advantage enrollees. Humana’s deal is with Welsh, Carson, Anderson & Stowe.

Under the deal’s terms, the private equity firm will commit at least $600 million and hold a majority stake in the new firm. The insurance company will only own a “small minority stake” but can later purchase the PE firm’s stake at a later date.

Humana Boosts its Senior Care Plans

Meanwhile, Humana currently operates 47 senior primary care centers in six states under its brand Partners in Primary Care. It also operates 104 senior care centers through its Conviva Brand. Those centers will not operate under the new joint venture.

Furthermore, the insurance giant now serves 4.1 million seniors in Medicare Advantage. The company plans to expand its Advantage membership by up to 420,000 people by December 2020.

“Partners in Primary Care is well-positioned to meet the health needs of the growing senior population with our integrated primary-care platform,” said Renee Buckingham, segment president of Humana’s care-delivery organization. “Our integrated, whole-person, value-based care model comprehensively and proactively addresses chronic conditions, wellness and social determinants of health.”

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