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HUMANA INITIATES ACTION TOWARD CREATION OF TWO COMPANIES

 HUMANA INITIATES ACTION TOWARD CREATION OF TWO COMPANIES
 LOUISVILLE, Ky., July 9 /PRNewswire/ -- Humana Inc. (NYSE: HUM) announced today its Board of Directors has authorized management to explore dividing the company into two separate publicly held corporations, one to operate Humana hospitals and one to administer Humana Health Care Plans.
 The board believes that the separate companies would better serve the needs and values of patients, physicians, employers and consumers by permitting each new company to focus on its separate business.
 Among the terms of the proposed transaction to be explored by management are the capitalization of the two entities, the division of personnel and various transitional relationships between the two corporations.
 It is anticipated that, if the transaction is finally approved by the Board of Directors, David A. Jones, Chairman of the Board and Chief Executive of Humana, would head the health plan company and Carl F. Pollard, President and Chief Operating Officer of Humana, would head the hospital company. The transaction would not be consummated until early calendar year 1993.
 "Humana's board today reaffirmed our commitment to both sides of our business -- hospitals and health plans," Mr. Jones said. "We believe the company has reached another of the periodic turning points in its history when a strategy, effective in its time, must be abandoned in favor of clearly focused new strategies appropriate for current conditions."
 Humana, based in Louisville, owns and operates 78 hospitals in the U.S. and Europe and has 1.7 million members in health benefit plans for employer groups and Medicare beneficiaries.
 -0- 7/9/92
 /CONTACT: Tyree G. Wilburn, Humana Inc., 502-580-1222/
 (HUM) CO: Humana Inc. ST: Kentucky IN: HEA SU: RCN


CM -- CH0012 -- 7875 07/09/92 13:25 EDT
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Publication:PR Newswire
Date:Jul 9, 1992
Words:288
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