Humana (NYSE: HUM) has agreed to sell substantially all of its 40% minority stake in the hospice company Gentiva in a $900 million transaction.
The 40% ownership stake will go to a “consortium of investors,” according to Humana. Other financial terms were not disclosed.
“Humana intends to utilize proceeds from the sale for general corporate purposes,” the company indicated in a press release. “The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and other customary closing conditions, and the company does not anticipate a material impact to 2026 earnings from this pending transaction.”
Gentiva is the nation’s largest hospice provider by Medicare claims, according to research from Hospice News and Hospice Analytics. The company was formed after private equity firm Clayton, Dubilier & Rice acquired a majority interest in Humana’s Kindred at Home hospice and personal care businesses in 2022 and restructured them under the Gentiva brand. Gentiva now operates more than 430 locations across 35 states, providing hospice, palliative and end-of-life care services.
Humana said the divestiture aligns with its long-standing strategy to exit non-core businesses acquired through its 2021 purchase of the remaining stake in Kindred at Home. The insurer plans to use proceeds from the sale for general corporate purposes and said the transaction is not expected to have a material impact on its 2026 earnings.