Analysis of Humana Inc.
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Humana Inc. was faced with a decision that it's hospitals were not showing as much growth or profit, as its insurance health plan. The added value to separating the two segments and spinning them off would be substantial to one; though, possibly detrimental to the other. "Instead of shedding properties that are under-performing or are incompatible with core businesses, companies are now freeing the divisions that offer the greatest potential for growth and, oftentimes, are essential components of their businesses." (Taptich, 1999Because maximizing shareholder value is the mantra that is supposed to guide every decision made by the CEOs of publicly traded companies, there is a great deal of pressure to realize every last ounce of growth potential.) The CEO David Jones realized the Health Plan had potential for growth and innovativeness; however, in its current structure it would be buried under the existing organization. Analysis: In reviewing the...


