Humana raises 2011 profit outlook on acquistion
Health insurer Humana Inc. has raised its 2011 earnings-per-share expectations by a dime after completing its $790-million acquisition of privately held health care company Concentra Inc.
The Louisville, Ky., insurer said Tuesday after markets closed it now expects earnings per share to range from $5.45 to $5.65, up from previous guidance of $5.35 to $5.55 per share. It predicts the deal will add about $800 million to 2011 revenue.
Concentra, based in Addison, Texas, delivers occupational medicine, urgent care, physical therapy and wellness services from more than 300 medical centers in 42 states. It also operates more than 240 worksite medical facilities.
Humana, with about 10.1 million medical members and 7 million specialty members, is the fifth largest publicly traded health insurer based on membership. It offers Medicare Advantage, Medicaid and commercial coverage as well as insurance for military members and their families.
Chairman and CEO Michael B. McCallister has said the deal reinforces Humana's business, diversifies its revenue stream and provides opportunities for expansion.