Well-being enhancement company
) recently entered into a partnership with not-for-profit
healthcare company Regence binding through 2015. The three-year
partnership will require Healthways to offer its SilverSneakers
Fitness Program to more than 100,000 Regence Medicare Advantage PPO
members in Oregon, Washington, Idaho and Utah.
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The SilverSneakers Fitness Program is a well-regarded physical
activity program to improve well-being of older citizens in the
U.S. implying reduced costs associated with healthcare. It
encourages positive changes in behavior by promoting a physical
regimen. This will result in lower disease rates resulting in
reduced medical expenditure for older adults.
The contract fee will garner incremental revenues for Healthways.
Its second quarter revenues increased 0.4% year over year to $170.2
million, supported by the acknowledgement of performance-based
The company inked 23 new, expanded or extended contracts in the
most recent quarter. The count included nine fresh contracts, one
expanded contract, two expanded and extended contracts and 11
extended contracts. The company also extended its SilverSneakers
Fitness Program contract with
Earlier, Healthways revealed agreements to provide its
SilverSneakers Fitness Program to Florida Blue, UCare and
The Healthways model encourages people to make favorable lifestyle
changes that lead to enhanced well-being, reduced healthcare costs,
improved performance and economic value. The company has invested
in technology platforms that provide scalable support with large
populations. It has tie-ups with a large proportion of U.S. health
plans and counts many millions of lives in its customer base.
Healthways currently retains a long-term "Outperform"
recommendation, supported by a short-term Zacks #2 Rank (Buy). The
company is the leader in a strategically critical and rapidly
evolving part of the health care services market. Its fitness
program (SilverSneakers) for seniors is available at over 15,000
centers across the U.S. and is available to over nine million
eligible enrollees through Medicare Supplement, Medicare Advantage
plans and group retiree plans. Healthways competes with
) among others.
Due to its unique scalable business model, Healthways shares
present a long-term investment opportunity, although it faces
certain challenges in the short term.