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Boards unanimously approve Humana sale to Aetna

WLKY SOURCE: WLKY
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Boards unanimously approve Humana sale to Aetna
Local and state leaders said they will do everything they can to keep jobs in Louisville after news Humana is being bought.Connecticut-based Aetna announced Friday it is buying Louisville-based Humana for $37 billion.The announcement ends months of speculation about a possible acquisition, but it doesn't keep people from worrying about whether they will lose their jobs.Humana employees were notified of the sale via an email that arrived at 2:37 a.m. Friday (See it here).We spoke with several Humana employees who told us they were instructed not to speak with the media.But they say they are worried about their jobs.“It's understandable. A concern like that is absolutely understandable. The most important thing to say is that, as was announced last night, it's going to take many months for this transaction to close,” Humana spokesperson Tom Noland said.Noland said there is no estimate on how many jobs will be lost -- if there are any jobs lost at all.“I do realize that transactions sometimes lead to layoffs, this one won't necessarily,” Noland said.Aetna says it purchased Humana largely for the Louisville company's success in the government healthcare sector.Noland said the deal will bring an additional $10 billion worth of business to part of Humana.Still, Kent Oyler, president of Greater Louisville Inc., says that could mean job cuts elsewhere.“Uncertainty is uncertainty. What we probably need to do now, as the employees and the business community serving humana, is be on our best game,” Oyler said.Mayor Greg Fischer spoke with Larry Hayes, the secretary of Kentucky’s Cabinet for Economic Development.Hayes said tax incentive packages are being considered.The two pledged to do everything in their power to not only keep Humana jobs in Louisville, but grow more Humana jobs.Aetna says it will make Louisville its headquarters for Medicare, Medicaid and Tricare business.It also pledged to "Maintain a significant corporate presence in Louisville."Mayor Fischer said that's a huge win for Louisville given the importance of those three government healthcare segments.“Consider that the combined revenue of the new company's business in the government sector will be larger than the revenue of Humana today. That bodes very well for local employment,” Fischer said.Larry Hayes, the secretary of Kentucky's cabinet for economic development, also acknowledged the governor is considering some tax incentive packages for Aetna.But he says it's too early to get into specifics on those.Kentucky Senator Mitch McConnell released a statement earlier about the sale, saying: “For more than 30 years, Humana has been a cornerstone of economic growth and a great philanthropic partner in our community.  This morning’s announcement, as I predicted during the debate five years ago, is the inevitable result of Obamacare’s push toward consolidation as doctors, hospitals, and insurers merge in response to an ever-growing government.“I hope that Aetna will recognize the tremendous value and expertise residing in Humana’s Kentucky workforce and will look to continue its close partnership with our experienced and educated workforce, the City of Louisville and our Commonwealth.”U.S. Rep. John Yarmuth also issued a statement, saying:"Though today's news is disappointing, I am encouraged to see that Aetna plans on maintaining a strong presence here. Louisville will be headquarters for all its Medicare, Medicaid, and TRICARE business. The Humana Foundation will remain intact and independent, so that important philanthropic work throughout our city will also continue. This potential deal is the latest in the decades-long trend of consolidation in the health care industry, and it is appropriate for the Department of Justice to scrutinize the pending merger to ensure it does not reduce competition, and therefore, consumers' options. If this deal is approved, I intend to continue working with Mayor Fischer and other leaders to make the case that Aetna should expand their operations in Louisville.”Several government officials released statements following the announcement of Aetna's purchase of Louisville-based Humana, saying:"My team and I have been in regular contact with company leaders to understand the terms of the merger and what it means for our city and state. Our goal is to keep all existing jobs in Louisville and grow even more. Louisville has a depth of human talent in this important business sector and we will demonstrate that depth to the new owners. We will be fighting to grow Humana-Aetna’s presence in Louisville.” -- Mayor Greg Fischer“In addition to the information contained in the news release, I have spoken to Bruce Broussard, CEO of Humana, this morning and Mark Bertolini, CEO of Aetna, earlier this week. Based upon all the information available, I am cautiously optimistic that this merger will be a net positive for Louisville and the Commonwealth. Both Humana and Aetna are progressive, innovative companies in the health care field, and that bodes well for the new entity because of the rapidly changing health care landscape. Mayor Fischer and I look forward to further conversations with both Mr. Broussard and Mr. Bertolini about the details of the transaction and the potential for the growth of jobs in Kentucky. Both of us are also pleased that the Humana Foundation will be separated out of the transaction and will remain in Louisville.” – Gov. Steve Beshear.“With initial reports that the proposed new firm’s Medicare, Medicaid and TRICARE operations will be headquartered here in Louisville, it appears that our community is in a good position to retain many of the jobs and the talented people who occupy them currently at Humana."However, we must still learn more of the details of the transaction before a final prognosis can be made on this matter. But it is apparent, the positive direction our city is moving in has proven beneficial with this announcement for Aetna to continue it operations.The news that the Humana Foundation will continue its good work here is is very encouraging for our city."To that end, I and my colleagues on the Metro Council will continue to work to put Louisville in a position to retain jobs like the ones we currently have with our major corporations , while at the same time strive to grow new businesses than can one day become the next Fortune 500 headquartered in Louisville.” -- President David W. Tandy.

Local and state leaders said they will do everything they can to keep jobs in Louisville after news Humana is being bought.

Connecticut-based Aetna announced Friday it is buying Louisville-based Humana for $37 billion.

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The announcement ends months of speculation about a possible acquisition, but it doesn't keep people from worrying about whether they will lose their jobs.

Humana employees were notified of the sale via an email that arrived at 2:37 a.m. Friday (See it here).

We spoke with several Humana employees who told us they were instructed not to speak with the media.

But they say they are worried about their jobs.

“It's understandable. A concern like that is absolutely understandable. The most important thing to say is that, as was announced last night, it's going to take many months for this transaction to close,” Humana spokesperson Tom Noland said.

Noland said there is no estimate on how many jobs will be lost -- if there are any jobs lost at all.

“I do realize that transactions sometimes lead to layoffs, this one won't necessarily,” Noland said.

Aetna says it purchased Humana largely for the Louisville company's success in the government healthcare sector.

Noland said the deal will bring an additional $10 billion worth of business to part of Humana.

Still, Kent Oyler, president of Greater Louisville Inc., says that could mean job cuts elsewhere.

“Uncertainty is uncertainty. What we probably need to do now, as the employees and the business community serving humana, is be on our best game,” Oyler said.

Mayor Greg Fischer spoke with Larry Hayes, the secretary of Kentucky’s Cabinet for Economic Development.

Hayes said tax incentive packages are being considered.

The two pledged to do everything in their power to not only keep Humana jobs in Louisville, but grow more Humana jobs.

Aetna says it will make Louisville its headquarters for Medicare, Medicaid and Tricare business.

It also pledged to "Maintain a significant corporate presence in Louisville."

Mayor Fischer said that's a huge win for Louisville given the importance of those three government healthcare segments.

“Consider that the combined revenue of the new company's business in the government sector will be larger than the revenue of Humana today. That bodes very well for local employment,” Fischer said.

Larry Hayes, the secretary of Kentucky's cabinet for economic development, also acknowledged the governor is considering some tax incentive packages for Aetna.

But he says it's too early to get into specifics on those.

Kentucky Senator Mitch McConnell released a statement earlier about the sale, saying:

“For more than 30 years, Humana has been a cornerstone of economic growth and a great philanthropic partner in our community.  This morning’s announcement, as I predicted during the debate five years ago, is the inevitable result of Obamacare’s push toward consolidation as doctors, hospitals, and insurers merge in response to an ever-growing government.

“I hope that Aetna will recognize the tremendous value and expertise residing in Humana’s Kentucky workforce and will look to continue its close partnership with our experienced and educated workforce, the City of Louisville and our Commonwealth.”

U.S. Rep. John Yarmuth also issued a statement, saying:

"Though today's news is disappointing, I am encouraged to see that Aetna plans on maintaining a strong presence here. Louisville will be headquarters for all its Medicare, Medicaid, and TRICARE business. The Humana Foundation will remain intact and independent, so that important philanthropic work throughout our city will also continue. This potential deal is the latest in the decades-long trend of consolidation in the health care industry, and it is appropriate for the Department of Justice to scrutinize the pending merger to ensure it does not reduce competition, and therefore, consumers' options. If this deal is approved, I intend to continue working with Mayor Fischer and other leaders to make the case that Aetna should expand their operations in Louisville.”

Several government officials released statements following the announcement of Aetna's purchase of Louisville-based Humana, saying:

"My team and I have been in regular contact with company leaders to understand the terms of the merger and what it means for our city and state. Our goal is to keep all existing jobs in Louisville and grow even more. Louisville has a depth of human talent in this important business sector and we will demonstrate that depth to the new owners. We will be fighting to grow Humana-Aetna’s presence in Louisville.” -- Mayor Greg Fischer

“In addition to the information contained in the news release, I have spoken to Bruce Broussard, CEO of Humana, this morning and Mark Bertolini, CEO of Aetna, earlier this week. Based upon all the information available, I am cautiously optimistic that this merger will be a net positive for Louisville and the Commonwealth. Both Humana and Aetna are progressive, innovative companies in the health care field, and that bodes well for the new entity because of the rapidly changing health care landscape. Mayor Fischer and I look forward to further conversations with both Mr. Broussard and Mr. Bertolini about the details of the transaction and the potential for the growth of jobs in Kentucky. Both of us are also pleased that the Humana Foundation will be separated out of the transaction and will remain in Louisville.” – Gov. Steve Beshear.

“With initial reports that the proposed new firm’s Medicare, Medicaid and TRICARE operations will be headquartered here in Louisville, it appears that our community is in a good position to retain many of the jobs and the talented people who occupy them currently at Humana.

"However, we must still learn more of the details of the transaction before a final prognosis can be made on this matter. But it is apparent, the positive direction our city is moving in has proven beneficial with this announcement for Aetna to continue it operations.The news that the Humana Foundation will continue its good work here is is very encouraging for our city.

"To that end, I and my colleagues on the Metro Council will continue to work to put Louisville in a position to retain jobs like the ones we currently have with our major corporations , while at the same time strive to grow new businesses than can one day become the next Fortune 500 headquartered in Louisville.” -- President David W. Tandy.