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Humana is also one of the Official Sponsors of [[Dollywood]]. |
Humana is also one of the Official Sponsors of [[Dollywood]]. |
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Humana is the |
Humana Park is the home of the [[Louisville Revolution]] of [[Major League Baseball]]. |
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=== Humana Military Healthcare Services === |
=== Humana Military Healthcare Services === |
Revision as of 14:43, 18 November 2009
![]() | |
Company type | Public (NYSE: HUM) |
---|---|
Industry | Health insurance |
Founded | Louisville, Kentucky (1961) |
Founder | Wendell Cherry ![]() |
Headquarters | Louisville, Kentucky, USA |
Key people | David A. Jones, Sr. and Wendell Cherry, co-founders Mike McCallister, president and CEO |
Revenue | ![]() |
3,800,000,000 United States dollar (2022) ![]() | |
![]() | |
Total assets | 25,396,000,000 United States dollar (2016) ![]() |
Number of employees | 28,900 (2009)[2] |
Website | www.humana.com |
Humana Inc. (NYSE: HUM), founded in 1961 in Louisville, Kentucky, is a Fortune 100 company that markets and administers health insurance. With a customer base of over 11.5 million in the United States, the company is the largest (by revenues) Fortune 100 company headquartered in the Commonwealth of Kentucky,[3] and has a market cap of over US $13 billion, $25.2 billion in revenue, and over 26,000 employees nationwide. Humana markets its health insurance services in all 50 U.S. states, D.C., and Puerto Rico, and has international business interests in Western Europe.
History
1961-1993: Nursing homes and hospitals
The company was founded by David A. Jones, Sr. and Wendell Cherry as a nursing home company in 1961. Then known as Extendicare, the company became the largest nursing home company in the United States.[citation needed] Extendicare later divested the nursing home chain and moved into purchasing hospitals in 1972, becoming the world's largest hospital company in the 1980s.[citation needed]
The corporate name was changed to Humana Inc. in 1974. Humana experienced tremendous growth in the years that followed, both organically and through the takeover of American Medicorp Inc. in 1978, which doubled the company's size.[citation needed] During the mid-1970s, the company used a fast-track construction process to complete and open one hospital a month.[citation needed] This accelerated construction schedule, which compressed time by overlapping processes, allowed Humana to develop hospital projects faster than the industry norm.[citation needed] During this construction boom, Humana developed the double corridor model for hospital construction. This highly efficient design minimized the distance between patients and nurses by placing nursing support services in the interior of the building with patient rooms surrounding the perimeter.[citation needed]
Humana brought the pioneering artificial heart research of Dr. Robert Jarvik and Dr. William DeVries, the inventor and surgeon of the first artificial heart implant performed at the University of Utah in 1982, to create the Humana Heart Institute, in Louisville in 1985.[citation needed]
The 1990s marked Humana's transition into a consumer health benefits company. Humana spun off its hospital operations from the health insurance operations in 1993, creating Galen Health Care, which then merged with Columbia/HCA.
1984-present: Health insurance
As the American health care system evolved in the 1980s, Humana developed and began marketing health insurance products.
United Healthcare attempted to acquire Humana in 1998. United's effort failed when it reported an almost billion-dollar quarterly loss. [citation needed]
In 2001, Humana partnered with Navigy, Inc., a subsidiary of Blue Cross and Blue Shield of Florida, Inc., to launch Availity.[citation needed]
In 2005, Humana entered into a business partnership with Virgin Group, offering financial incentives to members for healthy behavior, such as regular exercise.[citation needed]
The Business Health Care Group of Southeast Wisconsin (BHCGSW) chose Humana as its administrative partner to help reduce health care costs. Today, the BHCGSW represents more than 200 member companies, including large and small employers representing more than 150,000 health care consumers in Southeastern Wisconsin.[4]
In 2006, Humana launched an education campaign to market Medicare Advantage (MA) and Prescription Drug Plans (PDP) nationwide to Medicare eligible consumers, following the passage of the Medicare modernization act.
Humana also launched RightSource, a national mail-order retail pharmacy business in 2006.[citation needed]
Humana screened the 1942 classic Casablanca in select movie theaters nationwide as part of a campaign to preview its Medicare Advantage consumer services in 2007, marking the first time in more than 60 years that the film was seen nationally in movie theaters.[5]
In its March 2008 issue, Fortune Magazine named Humana one of the Top 5 Most Admired Healthcare Companies in the United States.[6]
Acquisitions
This list represents some of the major acquisitions completed by Humana since 1990 in the U.S.:
Year | Acquired company | Location |
---|---|---|
1990 | Michael Reese Health Plan | Illinois |
1995 | The Dental Concern | Illinois |
1995 | Carrington | Illinois |
1996 | Employers Health Insurance (EHI) | Wisconsin |
1997 | Physicians Corp of America (PCA) | Texas |
1997 | ChoiceCare | Ohio |
2000 | Memorial Sisters of Charity | Texas |
2003 | Oschner Health Plan | Louisiana |
2005 | CarePlus Health | Florida |
2005 | Corphealth Behavioral Healthcare | Texas |
2006 | CHA Health | Kentucky |
2007 | Compbenefits | Georgia |
2007 | KMG | Minnesota |
2008 | OSF Healthplans | Illinois |
2008 | Metcare | Florida |
2008 | Cariten | Tennessee |
Corporate affairs
Leadership
Michael B. McCallister, a 34 year company veteran, is president and chief executive officer of Humana. McCallister began his career in 1974 as an analyst in the company's finance department. In 2006, he was rated as one of the most successful CEOs in American business at creating shareholder value by Forbes Magazine. McCallister is a member of the Business Roundtable.
David Jones, Jr. serves as chairman of the board of directors. Jones is the son of company founder, David Jones, Sr.
In an interview published by The Courier-Journal, the day following his retirement as chairman of the board of directors, David Jones, Sr. indicated he had vehemently opposed United Healthcare's effort to takeover Humana in 1998, but was out voted by other members of the board of directors.
The year the leader joined the company is listed in brackets.
- Michael B. McCallister, President and Chief Executive Officer [1974]
- James (Jim) E. Murray, Senior Vice President and Chief operating officer [1989]
- James (Jim) H. Bloem, Senior Vice President, Chief financial officer and Treasurer [2001]
- Paul B. Kusserow, Senior Vice President, Chief Strategy Officer [2009]
- Christopher Todoroff, Senior Vice President General Counsel [2008]
- Raja Rajamannar, Senior Vice President, Chief Innovation & Marketing Officer [2009]
- Bruce J. Goodman, Senior Vice President and Chief Service and Information Officer [1999]
- Thomas (Tom) J. Liston, Senior Vice President, Senior Products [1994]
- Bonita (Bonnie) C. Hathcock, Senior Vice President and Chief Human resources Officer [1999]
- Heidi Margulis, Senior Vice President of Government Relations [1985]
- Thomas (Tom) Noland, Senior Vice President of Corporate communications [1984]
- Bruce Perkins, Senior Vice President [1982]
Locations
The Humana Building in Louisville, Kentucky is a well-known example of postmodern architecture designed by Michael Graves and completed in 1985. Humana sponsored an architectural competition to determine the design of its headquarters building. Scale models of the participants (including the submissions of Helmut Jahn, I. M. Pei, Michael Graves and others) are contained in a vestibule located directly above the Main Street entrance.
Humana also operates a state-of-the-art mail-order facility, RightSourceRx. RightSourceRx operates in Phoenix, Arizona and West Chester, Ohio. The Humana call center is located in Cincinnati, Ohio and other areas.
Sponsorship
Humana is the official health benefits provider of the PGA Tour and Champions Tour. PGA Tour player David Toms and LPGA player Nancy Scranton are both ambassadors for Humana.[citation needed]
The Humana Distaff Handicap is a Grade 1 race for thoroughbred fillies and mares, four-years-old and up. The race is run each spring on Kentucky Derby day at Churchill Downs and set at a distance of 7 furlongs for a purse of $250,000.[citation needed]
Humana is also one of the Official Sponsors of Dollywood.
Humana Park is the home of the Louisville Revolution of Major League Baseball.
Humana Military Healthcare Services
Humana Military Healthcare Services (HMHS) is a wholly owned subsidiary of Humana. Since 2004, HMHS has acted as the Managed Care Support Contractor for the United States Department of Defense Military Health System TRICARE South Region. HMHS has provided managed care for the United States Army, but Humana lost the most recent bid for this contract. The current contract is set to end in March of 2010.[7]
Controversy
In 1987, Humana sued NBC over a story line in the television medical drama St. Elsewhere whereas the hospital was to be sold to a for-profit medical corporation and renamed "Ecumena", with subsequent changes to the hospital, both positive and negative, emanating from that change. Humana was successful at forcing NBC into showing a disclaimer at the beginning of the September 30 episode saying that the drama had no connection whatsoever with Humana.[8]
On May 30, 1996, Linda Peeno, who was contracted to work for Humana for nine months, testified before Congress as to the downside of managed care.[9]
I wish to begin by making a public confession: In the spring of 1987, as a physician, I caused the death of a man. Although this was known to many people, I have not been taken before any court of law or called to account for this in any professional or public forum. In fact, just the opposite occurred: I was "rewarded" for this. It bought me an improved reputation in my job, and contributed to my advancement afterwards. Not only did I demonstrate I could indeed do what was expected of me, I exemplified the "good" company doctor: I saved a half million dollars.
I contend that "managed care," as we currently know it, is inherently unethical in its organization and operation. Furthermore, I maintain that we have an industry which can exist only through flagrant ethical violations against individuals and the public.
On the June 21, 2007 episode of Amy Goodman's Democracy Now! radio/television program, Peeno further claimed that "just within a day or so [of the refusal of the heart transplant, I] saw a sculpture being installed in the rotunda [of Humana's headquarters] and was told at that time that it had cost about the same as the heart transplant that we had denied...By the way, I later found out that that sculpture cost $3.8 million, so it was equivalent to eight heart transplants."[10]
Video of Linda Peeno's testimony appeared in Michael Moore's 2007 documentary Sicko. On June 28, 2007, in a statement about the movie, Humana declared that Peeno was never a Humana "associate" (permanent, full-time employee), but rather a "part-time contractor". Humana also disputed the portions of Congressional testimony that were shown by saying that because the patient's specific healthcare plan didn't cover heart transplants, the denial of coverage was valid.[11]
Humana was also featured in Season One of Moore's The Awful Truth, shown refusing to give a pancreatic failure sufferer authorization for a transplant due to a contradictory policy that stated that all of this man's diabetes related expenses were covered by his plan (his pancreas was failing due to his diabetes) but in another section, it said that it wouldn't cover organ transplants. Moore conducted a fake funeral on the front steps of Humana for the man who was sure to die without the transplant. Three days later, Humana changed their policy and authorized the man's treatment. This scene was the inspiration for Sicko.
On September 21, 2009 the U.S. Department of Health and Human Services opened an investigation into mass mailings sent by Humana to elderly Medicare recipients.[12] The mail was made to appear to contain official information about Medicare Advantage and prescription drug benefit information, but instead alleged that core Medicare benefits could be cut by the Obama administration's healthcare reform,[13] a claim refuted by the non-partisan website FactCheck[14] and John Rother, AARP's executive vice president.[15] Douglas Elmendorf, the head of the Congressional Budget Office, later supported the claim that Medicare benefits would be cut.[16] However, his comments were in reference to just one of several bills being drafted in Congress, and CBO estimates of another healthcare reform bill found that changes to premiums would vary.[17] Because these mailings may have been paid for by public money provided to Humana for Medicare Advantage and possibly violated terms of their contract, the Centers for Medicare and Medicaid Services instructed Humana to cease all such mailings to Medicare plan members pending an investigation.
Humana's Prescription Home Delivery
In 2006, Humana started a Prescription Home Delivery Pharmacy called RightSourceRx.[18] Members are now able to get a discount on 90 day prescriptions through RightSource, depending on what their plan allows. RightSource just filled their 500,000 prescription in December of 2008.
References
- ^ a b Financial Statements for Humana Inc.
- ^ Humana Inc. Profile
- ^ "Fortune 100 2008: States - Kentucky". Money.cnn.com. 2008-05-05. Retrieved 2009-08-05.
- ^ "Humana Press Release" (Press release). Humana.com. Retrieved 2009-08-05.
- ^ "Humana Press Release" (Press release). Humana.com. Retrieved 2009-08-05.
- ^ "America's Most Admired Companies 2008: Industry: Health Care: Insurance, Managed Care | FORTUNE". Money.cnn.com. 2008-03-17. Retrieved 2009-08-05.
- ^ "Tricare South Region to begin Transition August 1" (Press release). U.S. Department of Defense. 2004-07-28. Retrieved 2008-05-27.
- ^ "Humana lawsuit over `St. Elsewhere' prompts TV disclaimer by NBC". Chicago Sun-Times. 1987-10-01. Retrieved 2009-08-05.
- ^ Testimony of Linda Peeno, MD about Managed Care in the Healthcare Industry - May 30, 1996
- ^ Linda Peeno's Interview on Democracy Now!
- ^ "Humana issues statement on Moore's 'Sicko'". Business First. 2007-06-28. Retrieved 2007-07-07.
{{cite news}}
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(help) - ^ Medicare Probes Humana's Letter To Patients About Effects Of Health Reform Medical News Today 23 Sep 2009
- ^ Humana Mailer Targets Elderly, Claims Medicare Benefits To Be Cut Huffington Post. 2009-09-16.
- ^ Seven Falsehoods About Health Care FactCheck.org. August 14, 2009
- ^ GOP Tees Up Medicare Manifesto
- ^ Budget chief says Medicare benefits could be cut ERICA WERNER, Associated Press. September 22, 2009
- ^ The Effect of H.R. 3200 on Medicare Part D Premiums Congressional Budget Office, Director's Blog. August 28, 2009
- ^ RightSourceRx.com