Cigna Corp. (CI) has signed a host of collaborative care deals in a single trading session. This move by the company comes with the common motive of improving patient access to health care, enhancing care coordination and boosting the quality of care at affordable prices.
The deals were signed with Broward Health ACO Services, Memorial Health Network, Scripps, UCLA Medical Group, Facey Medical Group and Facey Medical Foundation. These collaborative care deals are equivalent to Accountable Care agreements, under which health and wellbeing companies, and physician practices come forward to join forces and establish an Accountable Care Organization (ACO). An ACO utilizes each others’ resources and expertise to provide coordinated high quality care to patients at lower costs. Similarly, with these collaborative care deals, Cigna is launching new programs for patients in specified regions. The goals are in sync with those of an ACO.
The agreements with Broward Health ACO Services and Memorial Health Network have brought the number of Cigna’s collaborative care initiatives in Florida to seven and Fort Lauderdale area to four. On the other hand, the deal with Scripps marks Cigna’s first collaborative care deal in the San Diego area. As part of this deal, over 10,000 beneficiaries of a Cigna health plan will receive care from 750 primary care doctors and specialists of Scripps. Again, the deal with UCLA Medical Group is slated to benefit more than 5,900 members under a Cigna health plan by allowing them access to 1,600 primary care doctors and specialists of UCLA. The deal with Facey Group and Facey Medical Foundation will benefit more than 2,500 individuals covered by Cigna health plans, by providing them with access to Facey Medical Group’s 200 primary care doctors and specialists.
The series of collaborative deals are expected to help Cigna’s transition from a pay-for-service system to a pay-for-value system. Usually the traditional healthcare systems emphasize on payment for services rather than healthier patient outcomes. Thus, at this juncture, Cigna’s shift to a pay-for-value or value-based system lends it an advantage over other healthcare systems, in terms of delivering better healthcare and thereby, gaining more members.
Cigna boasts an Accountable Care history spanning seven years. Presently, the company also has 114 collaborative care arrangements. These ACOs and collaborative care arrangements involve around 23,000 primary care physicians and 25,000 specialists, catering to more than 1.2 million commercial customers. The latest deals are expected to further enhance the customer base of the company by enhancing patient outcome.
Cigna currently carries a Zacks Rank #2 (Buy). Other stocks in the multiline insurance pace that look attractive at current levels include MGIC Investment Corp. (MTG), Ping An Insurance (Group) Company of China, Ltd. (PNGAY) and Assured Guaranty Ltd. (AGO). While MGIC Investment and Ping An Insurance sport a Zacks Rank #1 (Strong Buy), Assured Guaranty has the same Zacks Rank as Cigna.
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