Humana Concentra Buys Care Centers (AET) (CI) (HUM) (UNH)

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On Monday, Humana Inc.’s (HUM) subsidiary, Concentra Inc., acquired four urgent care medical centers from NextCare Inc. However, the company did not reveal the financial terms of the deal.

All the medical centers acquired by Concentra are in Atlanta, with two in Kennesaw and two in Mableton. Of these, two centers were consolidated with the existing Concentra Urgent Care centers, while the other two were renamed as Concentra Urgent Care centers. With this deal, the number of Concentra's urgent care centers in Altanta reaches 15.

Concentra's urgent care centers provide urgent care services and occupational services, in addition to wellness, preventive and health education services.

With the demand for health and wellness services on the rise, the acquisition appears well-timed. It is not only expected to increase Concentra's clientele, but also provide better quality service to NextCare’s existing patients. Additionally, it will increase the market share of Humana as compared to peers like CIGNA Corporation (CI), Aetna Inc. (AET) and UnitedHealth Group Inc. (UNH).

Overall, Humana and its subsidiaries continue to grow inorganically. Last month, Humana had announced a deal to purchase Arcadian Management Services, a Medicare Advantage health maintenance organization that has members in 15 U.S. states.

However, the financial and other terms of purchase remain undisclosed. Humana will complete the acquisition by the end of this year, after obtaining the approval of U.S. federal and state regulators.

Concentra Inc. is a leading private health care company based in Addison, Texas. It was acquired by Humana in December 2010. Humana currently carries a Zacks #1 Rank, which translates into a 'Strong Buy' rating for the near term.

On Thursday, the shares of the company closed at $76.27, up 1.69%, on the New York Stock Exchange.

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