Humana Inc. (HUM) has penned another deal to strengthen its 25-year long accountable care relationship history. This time, it is with MDX Hawai‘i. The latest transaction reflects Humana’s efforts to promote evidence-based, high-quality care for better medical outcomes at an affordable price.
Humana entered into the agreement with MDX Hawai‘i on Oct 1, 2014 and has now launched the Accountable Care Organization (ACO), which aims to benefit its Medicare Advantage members based in Hawaii. The company remains focused on serving its MA members more efficiently and has thus been forming ACOs with many organizations. If we go by the current statistics, Humana has accountable care relationships with more than 900 entities, reflecting the company’s strong commitment toward providing superior quality healthcare at lower costs.
Coming to the latest deal, MDX Hawai‘i has a 30-year long expertise in health plan administration in Hawaii. Humana intends to utilize the entity’s Preferred Provider Network that has 3,700 qualified providers to enhance patient care for its MA members in the region.
The main purpose of the ACO with MDX Hawai‘i is the provision of personalized care and population management tools like predictive analytics and chronic care, disease management and wellness programs to the Hawaiian MA members of Humana. It will also include value-based incentives that will be determined on performance improvement so that there emerges a better patient care coordination.
We expect the motive behind the deal, that is, enhanced patient care for MA members to not only help Humana to be in the favor of its existing clients but also attract more members, thereby scoring strongly with investors as well.
Humana currently carries a Zacks Rank #3 (Hold). However, better-ranked stocks in the healthcare services space include Health Net, Inc. (HNT), Tenet Healthcare Corp. (THC) and Triple-S Management Corporation (GTS). While Tenet Healthcare sports a Zacks Rank #1 (Strong Buy), Health Net and Triple-S Management have a Zacks Rank #2 (Buy).
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