The back-to-back signing of Accountable Care agreements within just the first two days of Dec 2014 definitely positions Humana Inc. (HUM) favorably with investors and potential members. While the first one was with Banner Network Colorado (BNC), the latest is with HealthCare Partners Nevada.
Through the first arrangement, Humana intends to enhance health care for individuals and families purchasing insurance in Weld and Larimer counties through the Connect for Health Colorado and Humana commercial health maintenance organization (HMO) programs. On the other hand, through the second deal, the company aims to deliver highly coordinated care to the Medicare beneficiaries and commercial members.
Under an Accountable Care agreement, health and wellbeing companies, and physician practices come forward to collaborate and establish an Accountable Care Organization (ACO). The sole motive behind ACO formation is to use each others’ resources and expertise to provide enhanced healthcare at an affordable price.
Through the first ACO, Humana members will have access to BNC’s 300 primary care physicians and specialists, hospitals such as North Colorado Medical Center in Greeley, McKee Medical Center in Loveland and Banner Fort Collins Medical Center (opening in Apr 2015), health centers and other ancillary services. Thus, this arrangement will help members avail care and wellness programs at a more personalized level. Meanwhile, the second one expands Humana’s existing relationship with HealthCare partners while providing comprehensive primary care services for Humana’s Medicare Advantage (MA) members, original Medicare beneficiaries and patients with most commercial insurance programs. Under the prevailing partnership with Humana, HealthCare Partners opened three primary care centers in Las Vegas to serve Humana MA members.
Humana boasts a 26-year long Accountable Care history which involves above 1.2 million members and 38,000 primary care physicians. It has been setting up ACOs over a long period to enhance patient care for its MA members. The aforementioned deals complement this agenda of the company.
Humana currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the healthcare space include UnitedHealth Group Incorporated (UNH), Gentiva Health Services Inc. (GTIV) and Centene Corp. (CNC). While Centene and Gentiva sport a Zacks Rank #1 (Strong Buy), UnitedHealth has a Zacks Rank #2 (Buy).
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment