Shares of Healthways Inc. HWAY rallied 4.5% (57 cents) to close at $13.20 on Dec 21, following the signing of four agreements with health systems for the former’s renowned Dr. Ornish’s Program for Reversing Heart Disease (Ornish Reversal Program).
Texas Health Resources, Sarasota Memorial Hospital, Mission Health and Sentara Healthcare have collaborated with Healthways to enhance the treatment facilities in their respective communities.
The Ornish Reversal Program is reportedly one of the most scientifically proven platforms in lifestyle medicine that finds use in the treatment of heart diseases and other chronic conditions. In addition to treating and reversing heart ailments, the program is also effective for type 2 diabetes, early-stage prostate cancer and various other chronic diseases.
Notably, in 2013, Healthways had entered into an exclusive partnership with Dean Ornish, and acquired the license to operate his Lifestyle Management Programs. Since then, Healthways has won an array of contracts for the program.
This September, Healthways signed agreements with three health systems, namely, Hawaii Pacific Health, KentuckyOne Health and The Heart Health Center. Also in April, Healthways collaborated with Beacon Health System, Ekahi Health System, Hunterdon Medical Center and St. Vincent’s HealthCare regarding the same.
A similar deal was struck with MedAssets MDAS in March. Under the terms of the five-year agreement, Healthways contracted MedAssets as its sales partner to ramp up the deployment of the Ornish Reversal Program in hospitals, health systems and physician organizations.
We believe that these partnerships will help Healthways gain significant market traction. The Ornish Reversal Program continues to be a key growth catalyst for Healthways, taking its significant demand into consideration.
Zacks Rank & Key Picks
Healthways carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical sector include Masimo MASI and Steris Plc STE. Both the stocks sport a Zacks Rank #1 (Strong Buy).
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