Kaiser plans to buy Humana Group Health

Maryland Watch

August 24, 1996

Kaiser Permanente intends to buy Humana Group Health, a Washington, D.C.-based HMO, both parties announced yesterday.

Humana bought Group Health, one of the country's oldest HMOs, just 2 1/2 years ago. The plan lost $13 million last year.

Humana Group Health has 117,000 members in the Washington area; Kaiser has 397,000 in the Baltimore and Washington areas.

The deal would strengthen Kaiser in the Washington market and would open Humana's 1,850-physician network to patients at Kaiser's centers, including five in the Baltimore area.

The network of physicians, who operate out of their own offices and may see patients from a number of HMOs, helped make the deal attractive to Kaiser, according to Ann Cahill, manager of corporate communications for Kaiser's mid-Atlantic operation.

Kaiser, which has traditionally operated primarily with doctors who are full-time employees working at Kaiser centers, has a network of only 63 primary care doctors.

The deal is expected to be completed in about a month and close around the end of the year, Cahill said.

Pub Date: 8/24/96

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