The Ledger

Humana is rebuilding the financing behind nearly 150 CenterWell senior primary care clinics, with BlackRock buying private equity firm Welsh, Carson, Anderson & Stowe’s stake in the clinics, valued at about $2.8 billion. Humana’s October 13 press release, filed with its 8-K, says the new joint venture, run with funds managed by BlackRock’s HPS Investment Partners, is majority owned by BlackRock and minority owned by CenterWell, Humana’s care-delivery unit, which keeps managing the clinics. The detail that matters is what is missing: the new venture has no put option, the earlier arrangement that could have forced Humana to buy out its partner. Humana says that should cut its balance sheet liabilities significantly and lower its cost of capital, though it gives no dollar figure for either. CenterWell can buy clinics out of the venture starting in 2028; if it has not bought them all by the end of 2033, BlackRock may sell the rest, with CenterWell holding a right of first offer. The venture will deploy additional capital over the next two years (amount not disclosed). Closing is expected in the fourth quarter of 2026, subject to state and federal approvals, and Humana says the deal is not expected to materially affect its 2026 adjusted earnings guidance. Ownership percentages are not disclosed. Per Healthcare Dive, a supplemental source, CenterWell and its sister brand Conviva operate more than 350 senior primary care locations, and Humana reports third-quarter results November 6. Who it hits: any operator financing value-based primary care with outside equity, because the put option, not the price, is the term that moved. Confidence: High on the announced terms; Low on the balance sheet effect until Humana quantifies it.

CVS Pharmacy agreed to pay $315 million to settle a Justice Department lawsuit alleging its pharmacies filled unlawful opioid prescriptions and then billed federal health programs. Per the Associated Press report, carried by the Bangor Daily News, the department announced the deal October 13 and resolves a civil case filed in 2024 under the Controlled Substances Act and the False Claims Act. The government alleged pharmacists filled excessive quantities and prescriptions from so-called pill mills, many billed to Medicaid and other federal programs, and that short staffing combined with performance metrics and incentive pay pushed pharmacists to fill without confirming legitimacy. CVS must add safeguards so opioids and other controlled substances are dispensed only when medically appropriate. CVS strongly disagrees with the claims and the settlement admits no wrongdoing. Payment terms were not stated. This is separate from the Omnicare matter we covered October 10. Who it hits: every pharmacy operator whose staffing model and pharmacist incentive pay are now part of a federal fraud theory. Confidence: Medium. The Justice Department’s own release could not be opened this run, so the figures rest on the wire report.

Galderma, the skincare maker, agreed to buy ZO Skin Health, a skincare brand sold through physicians, at a reported enterprise value of $1.5 billion. The Business Wire release is dated October 13; the page was blocked this run, so the value comes from the release’s search listing and should be treated as unconfirmed against the full text. Blackstone has owned a majority of ZO since 2020, per a Weil announcement, and a Reuters report carried by KSL said on September 8 that Blackstone was exploring a sale, with a potential value of about $2 billion. The two figures may use different bases, so do not read the gap as a discount. Who it hits: dermatology and aesthetic practices that dispense physician-channel skincare, a cash-pay line outside insurance. Confidence: Low to Medium.

Three earnings dates now frame the managed care and hospital read: Elevance Health on October 21, HCA Healthcare on October 27 and Humana on November 6. Elevance’s date comes from an aggregator reproducing its October 5 notice, so treat it as Medium until checked against its second quarter 8-K, which set the starting line at an 89.7% benefit expense ratio. HCA’s October 27 date is from a Yahoo Finance preview, a supplemental source. Humana’s is from the Healthcare Dive piece above, and will be the first call since the CenterWell venture was announced. Operators should watch utilization and any change in how the largest hospital operator describes volume and payer mix. Confidence: Medium on dates.

THE DEAL SHEET

Target	Acquirer/Investor	Vertical	Value	Source
Welsh, Carson, Anderson & Stowe equity stake in nearly 150 CenterWell senior primary care clinics	BlackRock (HPS Investment Partners)	Senior primary care joint venture	About $2.8 billion (company valuation); closing expected Q4 2026	Humana 8-K press release
ZO Skin Health	Galderma	Physician-dispensed skincare	Reported $1.5 billion enterprise value, unconfirmed against full release	Business Wire release
11% stake in SOD Sciences and half of its pseudohypoxia test	Vivos Therapeutics	Diagnostics, sleep and airway care	$12 million in preferred stock; closing expected on or about October 15	QuiverQuant summary of company release, supplemental