Humana Inc. (HUM) is making headlines with its latest partnership with kidney care service provider, DaVita Healthcare Partners Inc. (DVA). This alliance provides the company with an opportunity to foray into the kidney care space. Humana, renowned for its Accountable Care Arrangements for enhancing healthcare for its Medicare Advantage (MA) members, is now set to benefit them with a special needs plan (SNP).
Humana is forming Humana Kidney Care together with DaVita’s integrated kidney care division, VillageHealth. Humana Kidney Care is, an SNP that will cater to Humana MA members with end stage renal disease (ESRD), particularly in Las Vegas. Delving deeper, this partnership is between VillageHealth, Healthcare Partners Nevada (HCPNV), kidney care dialysis centers of DaVita and Humana.
Humana entered into an Accountable Care deal with HCPNV last year to deliver highly-coordinated care to the Medicare beneficiaries and commercial members. Notably, Humana will utilize the physician network of HCPNV and other providers to offer the SNP. This SNP provision will address the critical healthcare requirements of Humana members at a more personalized level.
VillageHealth has generated better patient outcomes and enhanced healthcare before. Thus Humana chose to offer VillageHealth plans to the Nevada MA members. Per the provisions of an alliance agreement, the aforementioned deal should benefit both Humana and DaVita. HCPNCV is a veteran in the usage of Total Care Model, where primary care providers are supported by an entire network of nurses, specialists, care managers, diagnostic team members and others, all working to carefully manage patients. The above alliance, therefore, should help DaVita enhance its patient outcomes.
Humana Kidney Care will allow the MA members to navigate hospitals and physician offices thereby allowing them to select the best suited option for themselves. Additionally, members will be allowed prescription drug benefits through Humana Kidney Care.
With the gradual increase in the number of patients with critical healthcare requirements, this alliance is expected to help Humana cater to the needs of its members in a more coordinated way, thereby delivering clinical excellence. This, in turn, is expected to make way for the company to attract more members thereby enhancing its revenue base.
Humana currently holds a Zacks Rank #2 (Buy). Other stocks in the HMO space that look attractive at current levels include Centene Corp. (CNC) and Anthem Inc. (ANTM). While Anthem sports a Zacks Rank #1 (Strong Buy), Centene has the same Zacks Rank as Humana.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment