Humana Inc. HUM declared that its subsidiary Humana At Home has acquired a leading provider of nurse practitioner in-home visits – Your Home Advantage. The financial terms of the deal were not disclosed.
Florida-based Your Home Advantage is a healthcare management company, which is committed to improve clinical and quality outcomes by bridging the gap between the physician’s office and the member’s home. Your Home Advantage services cover multiple states including Florida, Texas, Georgia and Missouri.
The addition of Your Home Advantage will help Humana boost the clinical results which Humana At Home has achieved so far for its Medicare Advantage members with chronic conditions. Also, this deal will enhance the company’s home-based capabilities, thereby integrating clinical programs with the care management team and related clinical data.
Currently, Humana At Home provides personalized care to nearly half a million Humana members. As of Dec 31, 2014, the company’s medical membership increased 15.5% year over year to 13.8 billion. This acquisition is expected to further strengthen the membership base as well as improve the overall experience of the consumers.
Humana has a highly profitable Medicare business, which the company plans to expand further through acquisitions and joint ventures. On Dec 21, 2012, the company acquired Metropolitan Health Networks, Inc. On Sep 6, 2013, the company tookover the largest provider of nursing home diversion services in the state of Florida – American Eldercare Inc.
Notably, Humana’s solid liquidity position with cash and cash equivalents of $1.2 billion as of Dec 31, 2014 (up from $161 million as of year-end 2013) and retained earnings of $9.9 billion (up from $8.9 billion as of year-end 2013) cushions its expansion initiatives.
Currently, Humana holds a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks from the same industry worth considering include Magellan Health, Inc. MGLN, Aetna Inc. AET and Anthem, Inc. ANTM. While Magellan Health sports a Zacks Rank #1 (Strong Buy), Aetna and Anthem holds the same Zacks Rank as Humana.
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