Villages health care
 

My question is I read that Humana Centerwell I guess purchased villages health care for 68 million. I thought previously Morse owned the 10 buildings and villages health paid rent which came to around 12 million a year. Not sure about those numbers. I read centerwell purchase includes all the buildings? Also read tvh grossed or netted $400 million last year. I’m sure there is more to it but that would be a good deal for centerwell. One more question there are advantage plan and supplements. My understanding is you can’t have an advantage plan and belong to villages health soon to be centerwell. But I assume they will accept other supplements. Sorry for the ignorence

Morse does own the buildings and collects rent. Centerwell purchase includes the lease to the buildings, as well as any other contracts they had.

In the past, Village Health only accepted certain Advantage Plans from United Health. That will probably change with the new ownership. No announcement has been made yet.

If the correct number is $400 million, that would be gross, not net. There are many large expenses to be paid from that, notably rent, salaries, insurance, utilities, etc.

TVH only accepts Medicare Advantage plans from UHC, Florida Blue, and Humana.

It will get awkward if they don't announce what advantage plans they're going to accept before the open enrollment period ends.

I am trying to get information on the 2026 plans. I talked to an agent and was told that the plan details will come out on October 1 and the enrollment period for 2026 is from October 15 to December 7, 2025.

Rent
 

So centerwell just purchased the lease arrangements, Morse still owns the building. Yes the $400 million must be gross?

“ 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.”

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

Access to all the bankruptcy documents
 

All the bankruptcy documents can be accessed at stretto.com. Click on "Chapter 11 Cases" and follow the directions.

Centerwell - payer-agnostic
 

My understanding is that Centerwell is a payer-agnostic, which means they accept all insurance. Right now The Villages Health only accepts Florida Blue, UHC, and i think one other.
This might bring in more patients to them.

Their specialists accept original Medicare with supplemental insurance plans.

Yes they do, but not Primary Care.

From TVH's website:

And primary care?

For those not well-versed, supplement plans refers to Medigap plans. The confusion comes in that, IMHO, Advantage plans are supplemental because they are not part of Medicare parts A/B, but they are not supplement plans.

Confusion abounds.

Confusion certainly does abound.

My husband is on an advantage plan and sees Dr's at TVH.

I respectively disagree with the statement that TVH accepts patients not on Medicare with commercial insurance. I tried late last year to make an appointment with TVH and was denied because I am NOT on Medicare.

Tvh allowed non residents of tv to join as long as they had medicare advantage. Wonder if there will be an changes to this policy.

That might be a relatively recent change. In the past, they accepted those under Medicare age as PCP patients. I was one of those. I suspect demand forced a change.

That must have changed at some point. I do see where they only take MA plans.

I am pretty sure that this would be illegal. Medicare advantage plans have a specified service area, and they are required to serve all patients who are enrolled in the plan and who live in the approved service area.

Plans should be coming out now. I received my changes this past week

Typical sale
 

When a healthcare company that bills Medicare/Medicaid or any other private insurance company sells the business, all the debts transfers to the new buyers. That includes known repayments and future repayments that might arise after the sale is completed. That is why there is a very thorough due diligence process before an offer to purchase is put forward. When there is a repayment such as the 340 million dollar amount The Villages Healthcare owes, it is the company that owes the debt, not the owners. The debt will be negotiated in the sale price. It looks like Humana purchased The Villages Healthcare for the 340 million dollar debt repayment plus a 64 million dollar payout totaling 404 million dollars. Considering their total billing a year is around 400 million, the sale is exactly what I would expect for that revenue size. Healthcare business generally sell for one time gross sales. I’ve sold 4 healthcare companies during my 30 year career and each time a 20% indemnity basket was withheld from the sale price for 3 years to cover any insurance repayments that might arise. That is common procedure. All current debt, repayments and future repayments transfer to the new owners. It’s appears to have worked out for everyone. Humana got a thriving medical practice at a fair price, Medicare got their 340 million dollars back, the Morse family got the heck out of healthcare where they didn’t belong and the Patients will continue getting healthcare close to home. Yay for everyone.

Plans should be coming out now. I received my changes this past week

This is a very interesting post, thank you. It looks like from what you said that the owners of the Villages Health are getting 64 million dollars for this large practice. That sounded like a very low sales price to many of us. But from what you are reporting is that the buyer of Villages Health is actually paying a total of 404 million dollars, 64 million to Villages Health and 340 million to Medicare. Thank you for this report. It clears up a lot of questions. Medicare gets paid back, the owners of Villages Health walk away, and the many Villagers in the Health Plan get continued health care. Thanks again!

If you belong to UHC, the 2026 plan and benefits is available online. I recently reviewed it and there are some changes for 2026, but nothing that would raise too many concerns. The plan we are on will see a premium increase to $62/month from $26/month and there are some changes to what we pay as co-payments, etc. It depends on what plan one is enrolled in.

The above statement applies to traditional sales that don’t involve the selling company selling the entity while in bankruptcy. In the case of TVH, the bankruptcy court determines what entity, if any, assumes the creditor claims (debts of the seller). Based on a quick reading of the bankruptcy court settlement, Centerwell (Humana) assumed very little of TVH’s debt, and not any of the Medicare overpayments.

L A had a long post and I was trying to determine fact vs. fiction.
Came across as fact, but
Most of the post did not seem factual to TV Health transaction.

:thumbup:

I agree. That was the policy in the past, but it was changed years ago.

Your post has some very good points. LoriAnn’s post sounded good but from what I am hearing now, may not be true in a bankruptcy sale. It would be nice to find someone who could clarify what might actually transpire in this bankruptcy sale of the Villages Healthcare System.

I wouldn’t assume that.

Be careful with the details. A few years ago I was told they would not accept United healthcare ppo. Earlier this year again ask them and they said oh yes we do now accept uhc and I filled out the paperwork got accepted and then I try to get an appointment. It turns out there was only one primary care physician in their system who would accept United healthcare at Brownwood and another one up north while I wasn't aware of that when I started but I still continued and then I found out it was going to take me about 4 months to get my first appointment with that doctor. I think there's just a little bit too much going on with the villages healthcare system.

TVH has accepted non-Medicare marketplace health insurance AT LEAST for the past 7 years, because I'm still not old enough for Medicare yet and I've been a patient there for the past 7 years.

The problem that Rosey probably ran into, was discovering that doctors weren't accepting NEW patients. That is definitely a problem, there is a doctor shortage at TVH. That's why a couple years ago they were running ads offering $10,000 reward for anyone who referred a doctor to work for the Villages, if the doctor stayed in employment for a specified period of time. One of the rooms in TVH in Santa Barbara still has the poster up. I think it's on the side wall of the reception area, I only remember noticing it somewhere in the building last time I was there a couple months ago for my annual physical.

But yes they do accept regular normal non-medicare health insurance. They also accept Medicare Advantage for Florida Blue, UH Advantage, a specific Humana Advantage plan. They don't accept traditional Medicare, with the exception of a limited number of specialists, who might not be accepting new patients because of the ongoing doctor shortage.

As I understand it, in the past, The Villages Health has not "always" accepted non-Medicare insurance for primary care. And, I also understand that, in 2025, they are suspending or stopping the acceptance of non-Medicare insurance. If this is important to you, I would suggest calling them directly because it is very confusing.

I did call them, because I have to deal with having normal health insurance for the first half of 2025, and then I have to switch to some variety of medicare starting in the second half of 2025.

They said I'm fine, they'll still be accepting normal health insurance, I can keep my same doctor, he's not dropping anyone.

However, he isn't taking new patients, no matter what insurance they have. This has been true for three years, at least, when we tried to get hubby signed up with him.

Yes, but are they accepting people who are under 65 and not on Medicare?

THEY are, yes. HE is not, because he already has a full roster. This is the problem many people will find, when they try to get a PCP assigned to them at TVH. TVH isn't a PCP. It's a health GROUP, with PCPS employed by them. If you need to establish a patient file there, you need a PCP. But you can't get one, if you can't find one that is still accepting new patients at all.

'Not accepting new patients' has nothing to do with health insurance. It has to do with a doctor shortage.

I’m gonna go out on a limb and predict that building thousands of new homes, at a breakneck pace, isn’t the solution to fixing the doctor shortage!

Red flag........