Humana Inc. is in “advanced talks” with twoprivate-equity firms to acquire Kindred Healthcare Inc. in a dealthat would value the medical operator at $4 billion including debt,the Wall Street Journal reported.

Humana, TPG, and Welsh, Carson, Anderson & Stowe LP wouldrun Kindred’s home and hospice-care business together, while thetwo private-equity firms would take over Kindred's facility operations that include acute-care hospitals andrehabilitation centers, the newspaper reported Sunday, citingpeople familiar with the matter that it didn’t name.

The deal is said to value Kindred at $9 a share, according tothe Journal, compared with the company’s closing stock price onDec. 15 of $8.60. The deal, which could still fall apart, may beannounced soon, the newspaper said.

Related: UnitedHealth buys DaVita's physician practices for$4.9 billion

Humana, which this year was forced to scrap a proposed $37billion combination with rival Aetna Inc. amid antitrustopposition, said last month it would eliminate 2,700 jobs,or 5.7 percent of its workforce to cut costs amid shifts in thehealth-insurance business. The company’s shares have gained 24percent this year, closing at $253.64 on Dec. 15.

The changes in the health-insurance industry have led to arecent spate of deals. Earlier this month, CVS Health Corp. said it would buy Aetna Inc.for about $67.5 billion, combining the largest U.S. drugstore chainwith the third-biggest health insurer. Also, UnitedHealth GroupInc. said it would buy DaVita Inc.’sphysician-network business for $4.9 billion, adding hundreds ofmedical clinics to the biggest U.S. health insurer.

Alex Kepnes, a spokesperson for Humana, didn’t immediatelyrespond to a request for comment. A phone call to Kindred spokesmanTodd Flowers wasn’t immediately returned. A TPG representativedeclined to comment, while a phone call to Welsh, Carson,Anderson & Stowe wasn’t immediately returned.

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