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The Villages Health ("TVH") Announces Strategic Restructuring and Agreement to be Acquired by CenterWell

1. TVH files for Chapter 11 bankruptcy to restructure operations. 2. CenterWell is acquiring TVH's assets, enhancing patient care. 3. TVH serves over 55,000 patients, mostly Medicare beneficiaries. 4. TVH's billing issues, related to Medicare, are being investigated. 5. Transition aims to maintain uninterrupted patient care during sales.

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FAQ

Why Bullish?

Humana's CenterWell acquiring TVH enhances market position in primary care.

How important is it?

The acquisition aligns with Humana's strategy for expanding senior care services.

Why Long Term?

Successful integration of TVH into CenterWell could improve revenue streams over time.

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HUMCVSAETANTMUNH
, /PRNewswire/ -- The Villages Health ("TVH"), the trusted healthcare system for The Villages retirement community in Florida, today announced that it is proceeding with a strategic restructuring to preserve the business's day-to-day operations and further enhance patient care. As part of this strategy, TVH today voluntarily filed for bankruptcy in the United States Bankruptcy Court for the Middle District of Florida, Orlando Division, under Chapter 11 of the U.S. Bankruptcy Code, and filed customary First Day Motions seeking relief on an immediate basis to minimize any adverse delays or disruptions to its daily operations. In addition, after extensive negotiations and discussions, CenterWell Senior Primary Care, the nation's largest senior-focused value-based primary care provider, has entered into a "stalking horse" Asset Purchase Agreement with TVH. The agreement provides for CenterWell, the healthcare services business of Humana Inc., to acquire TVH's assets as a going concern, including eight primary care centers and two specialty care centers. A Court order approving the sale, following an auction process during which other parties may submit an offer to purchase TVH's assets, will be a condition of the transaction moving forward and closing. In the meantime, TVH will continue to fully operate its business and manage its affairs without interruption during the sale process, providing high-quality healthcare services to patients during this transition period. Given CenterWell's payor-agnostic structure, TVH patients are expected to have continued access to their current provider following the closing of the transaction, regardless of their selected insurance plan. "TVH is a clinically excellent healthcare system. We believe this plan of reorganization and planned transaction with CenterWell is in the best interests of our patients, physicians, other clinicians, employees, partners and community members, and will ultimately result in a more promising future," said Dr. Elliot Sussman, Chairman of the Board and physician founder of The Villages Health. "Under CenterWell, this healthcare system will continue to be a leading provider of patient-centered, primary care-driven and community-based healthcare. Our primary goal remains to keep our patients healthy and to heal them quickly, as it has always been from the inception of TVH." "CenterWell is excited to enter into this agreement with The Villages Health and we look forward to helping TVH patients achieve their best health through our personalized and integrated approach to care," said Sanjay Shetty, M.D., President of CenterWell. "This was by no means an overnight decision, nor has it been an easy one. We want to reassure our community that there will not be any effects on patient care experienced by our patient population," said Bob Trinh, Chief Executive Officer of The Villages Health." "We will do everything we can to make this transition as seamless as possible for our community. We are still the same doctors and clinicians caring for our patients," said Dr. Jim Flaherty, Chief Medical Officer at The Villages Health.    "The clinicians and staff at The Villages Health share our passion for making sure each patient they see feels cared for and supported as they seek to enjoy a healthy and active lifestyle," said Renee Buckingham, President of CenterWell Senior Primary Care. "We look forward to welcoming the TVH team to CenterWell Senior Primary Care and working together to improve the health of the residents of The Villages and the surrounding communities." TVH is known for providing exemplary, patient-focused healthcare to residents of North Central Florida, The Villages, and surrounding communities, and TVH's medical providers have been fixtures in their communities and trusted healthcare providers to their patients for the past 13 years. TVH currently provides essential care to more than 55,000 patients—many of whom are beneficiaries of Medicare and Medicare Advantage plans. In the Fall of 2024, TVH identified and immediately investigated a potential set of problems with its Medicare billing practices, and based on the results of that investigation, took immediate action on several fronts to report and correct the situation, while also proactively self-reporting the identified billing discrepancies to relevant U.S. Government agencies. TVH has spent the past six months working diligently with the Medicare program. This work toward a resolution with the U.S. Government, estimated at hundreds of millions of dollars in overpayments and likely significant accompanying penalties, continues without interruption and is independent of, and being conducted separately from, the transaction with CenterWell. For media inquiries, please contact [email protected] For community questions about this announcement, please direct them to [email protected]. About The Villages Health ("TVH")The Villages Health ("TVH") is a premier healthcare provider in North Central Florida that operates primary and specialty care centers, helping its patients live healthy lives through a team-based approach to patient care. In addition to primary care, TVH's healthcare providers provide specialty care services in the fields of audiology, behavioral and mental health, cardiology, dietetics, endocrinology, gastroenterology, gynecology, international pain, neurology, podiatry, rheumatology, and urology. For more information, please visit thevillageshealth.com. About CenterWell CenterWell is a leading health care services business focused on creating integrated and differentiated experiences that put our patients at the center of everything we do. The result is high quality healthcare that is accessible, comprehensive, and, most of all, personalized. As the largest provider of senior-focused primary care, a leading provider of home healthcare, and a leading integrated home delivery, specialty, hospice, and retail pharmacy, CenterWell is focused on whole health and addressing the physical, emotional and social wellness of our patients. CenterWell is part of Humana Inc. (NYSE: HUM). Learn more about what we offer at CenterWell.com. SOURCE The Villages Health WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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