TVH, a healthcare provider in Sumter County, Florida, recently discovered it had been unintentionally overbilling Medicare and has spent the past six months working with the government to resolve the issue. The company’s efforts to correct the billing errors are ongoing and separate from its potential sale to CenterWell, according to a recent announcement.

Court filings reveal that TVH owes the federal government $361 million and lists over 200 creditors, with estimated total debts ranging from $100 million to $500 million. Its assets are estimated between $50 million and $100 million.

To ensure uninterrupted care for its 55,000-plus patients during this challenging period, TVH reached a deal with CenterWell that allows the practice to continue operating during the sale process. CEO Bob Trinh emphasized that the decision wasn’t made lightly and that patient care will remain unaffected.

CenterWell, part of Humana, has signed a “stalking horse” agreement to potentially acquire TVH’s eight primary care and two specialty centers. This type of agreement sets the starting bid for the sale of a bankrupt company’s assets but is not yet final.

CenterWell President Dr. Sanjay Shetty expressed enthusiasm about expanding the company’s “personalized and integrated” care model through this acquisition. While Humana hasn’t disclosed specific reasons for pursuing TVH, the insurer has been steadily expanding CenterWell as part of its broader strategy to deliver care directly to its members. By owning care centers, Humana can both improve coordination and retain a larger share of healthcare spending.

Beyond serving Humana members, CenterWell also brings in revenue by treating patients covered by other insurers, helping offset financial pressures from rising medical costs and regulatory changes.

As of the end of 2024, Humana operated over 340 primary care centers under its CenterWell Senior Primary Care and Conviva Senior Primary Care brands. The company announced plans to add up to 30 more centers this year. CenterWell’s business has been growing steadily, reporting $392 million in operating income in the first quarter — a 39% increase from the same period last year.

Source:  Healthcare Dive