an advertisement . please help improve it by removing promotional content and inappropriate external links and by adding encyclopedic content written from a neutral point of view . february 2013 learn how and when to remove this template message humana inc. guidance when you need it most type public traded as nyse hum s & p 500 component industry managed health care founded august 18 1961 ; 55 years ago 1961 08 18 as extendicare inc. louisville kentucky u.s. headquarters humana building louisville kentucky u.s. key people david a. jones sr. and wendell cherry co founders bruce broussard ceo and president revenue us 41.313 billion 2013 1 us 39.126 billion 2012 1 operating income us 2.061 billion 2013 1 us 2.016 billion 2012 1 net income us 1.231 billion 2013 1 us 1.222 billion 2012 1 total assets us 20.735 billion 2013 2 us 19.979 billion 2012 1 total equity us 9.316 billion 2013 2 us 8.847 billion 2012 1 number of employees 52 000 1q 2014 3 website www.humana.com humana inc. is an american louisville kentucky based for profit health insurance company . as of 2014 update humana has had over 13 million customers in the u.s. 4 not in citation given reported a 2013 revenue of us 41.3 billion 5 and has had over 52 000 employees . 3 not in citation given in 2013 the company ranked 73 on the fortune 500 list which made it the highest ranked by revenues company based in kentucky . it has been the third largest health insurance in the nation . 6 the u.s. dept. of health and human services investigated humana in 2009 for sending flyers to medicare recipients that the aarp characterized as deceptive . the company s managed care model has also been criticized for ethical lapses and limitations . the health insurer aetna said on july 3 2015 that it had agreed to acquire its smaller rival humana for 37 billion in cash and stock . 7 contents 1 history 1.1 1961 1983 nursing homes and hospitals 1.2 1984 present health insurance 2 corporate affairs 2.1 locations 2.2 sponsorship 2.3 humana military healthcare services 3 controversy 4 see also 5 references 6 external links history edit 1961 1983 nursing homes and hospitals edit lawyers david a. jones sr. and wendell cherry founded a nursing home company in 1961 . the company known in 1968 as extendicare inc. became the largest nursing home company in the united states . in 1972 jones and cherry sold the nursing home chain to purchase hospitals . 8 in 1974 the partners changed the corporate name to humana inc. 8 it grew in the following years both by business and in 1978 through the takeover of american medicorp inc. which doubled the company s size and growing into the world s largest hospital company in the 1980s . citation needed during the mid 1970s the company used a fast track construction process to complete and open one hospital a month . citation needed during this period humana developed the double corridor model for hospital construction . this 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 1984 present health insurance edit as the american health care system changed in the 1980s one of its hospitals in arizona lost a contract with the largest health maintenance organization in the area and humana created its own health insurance plan . 8 in 1993 humana had become the largest hospital operator in the country owning 77 hospitals . humana executives spun off hospital operations from health insurance operations to create galen health care . the following year they sold the 73 hospitals of galen health care inc. to nashville based columbia hospital corporation of america for 3.4 billion . 8 in 1998 one year after jones has stepped aside as ceo united healthcare made an unsuccessful attempt to acquire humana . 8 united s effort failed when it reported an almost billion dollar quarterly loss . citation needed in 2001 humana was a cofounder of availity . 9 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 on november 16 2006 the centers for disease control and prevention cdc and humana inc. partnered to expand on traditional private sector approaches to population health management . 10 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 . citation needed the same year humana launched rightsource a national mail order retail pharmacy business . 8 in its march 2008 issue fortune magazine named humana one of the top 5 most admired healthcare companies in the united states . 11 in 2010 humana bought texas based concentra inc. which owns urgent care and physical therapy centers for 790 million effectively returning to health care services . 8 in may 2011 humana announced it would be using mobilestorm to transmit protected health information to patients . 12 in march 2015 humana announced the sale of concentra to private equity firm welsh carson anderson & stowe and select medical holdings corporation for about 1 billion with proceeds to fund a 2 billion share buyback program and other corporate spending . 13 in july 3 2015 aetna announced that it will acquire humana for 37 billion in cash and stock approximately 230 a share at that time . aetna and humana shareholders will own 74 % and 26 % of the new combined company . 14 aetna inc chief executive mark bertolini expects the deal to close in 2016 . 15 corporate affairs edit locations edit the humana building in louisville kentucky is an example of postmodern architecture designed by michael graves and completed in 1985 . humana s mail order facility humana pharmacy has operated out of phoenix arizona and west chester ohio.humana s call centers are located in cincinnati ohio and other areas . sponsorship edit pga tour player david toms citation needed and lpga player nancy scranton are both spokespeople for humana . 16 humana is the official health benefits provider of the pga tour and champions tour . 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 the presenting sponsor of the grand ole opry . 17 since 1979 humana has been a principal sponsor of the annual humana festival of new american plays in louisville kentucky . 18 humana military healthcare services edit in 1993 humana founded humana military healthcare services hmhs as a wholly owned subsidiary . 8 from 2004 2009 hmhs was the managed care contractor for the department of defense military health system tricare south region . citation needed in 2009 hmhs managed care support contract was awarded to united military and veterans services a subsidiary of unitedhealth group . hmhs protested that decision and the government accountability office upheld the protest in late 2009 . citation needed in 2011 hmhs regained the five year contract to administer medical benefits to military members and families in the south region a contract worth 23.5 billion . 8 controversy edit 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 . 19 on may 30 1996 linda peeno a physician who was contracted to work for humana for nine months testified before congress as to the downside of managed care . peeno said she was effectively rewarded by her employer for causing the death of a patient because it saved the company a half million dollars . peeno stated that she felt the managed care model was inherently unethical . 20 in 1999 season one of michael moore s the awful truth tv series featured humana refusing to pay for a diabetic patient with pancreatic failure needing a transplant . 21 a contradictory policy stated that all of this man s diabetes related expenses were covered by his plan but another section stated that it did not cover organ transplants . moore conducted a fake funeral on the front steps of the humana building and three days later humana changed their policy and authorized the man s treatment . . citation needed michael moore s 2007 documentary sicko used the video of linda peeno s testimony . on june 28 2007 humana declared that peeno was never a humana associate permanent full time employee but rather a part time contractor . humana disputed portions of her congressional testimony by saying that because the patient s healthcare plan did not cover heart transplants denial of coverage was valid . 22 on september 21 2009 the u.s. department of health and human services opened an investigation into humana mass mailings to elderly medicare recipients . 23 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 24 a claim refuted by john rother aarp s executive vice president . 25 douglas elmendorf the head of the congressional budget office cbo supported the claim that medicare benefits could be cut 26 but his comments were in reference to just one of several congressional bills . cbo estimates of another healthcare reform bill found that changes to premiums would vary . 27 the centers for medicare and medicaid services instructed humana to cease all such mailings to medicare plan members pending an investigation . 24 hhs secretary kathleen sebelius in a letter to the insurance industry threatened that bad actors may be excluded from new health insurance markets that were to open in 2014 . senate republicans pointed out in a letter to sebelius that a 1997 directive from the centers for medicare and medicaid services explicitly allowed hmos to tell members about legislation and urge them to express opinions . citation needed see also edit top 100 contractors of the u.s. federal government list of major employers in louisville kentucky references edit a b c d e f g h humana inc 2013 annual report form 10 k xbrl . united states securities and exchange commission . february 19 2014 . a b humana inc 2014 q1 quarterly report form 10 q xbrl . united states securities and exchange commission . may 7 2014 . a b humana announces new corporate social responsibility goals and issues report on recent progress press release . humana inc. april 17 2014 . retrieved may 28 2014 . humana reports first quarter 2014 financial results ; reaffirms 2014 financial guidance . humana inc. retrieved may 28 2014 . financial statements for humana inc . google.com . december 31 2013 . retrieved may 6 2012 . fortune 500 2013 . money.cnn.com . retrieved may 28 2014 . bray chad ; abelson reed july 3 2015 . aetna agrees to acquire humana for 37 billion in cash and stock . the new york times . retrieved december 27 2015 . a b c d e f g h i steve ivey and ed green november 11 2011 . humana s history has been one of recognizing opportunities . american city business journals . retrieved march 23 2015 . mathis karen brune july 30