Well-being enhancement company
) and CDPHP recently revealed that they have extended by three
years until 2015 their commitment to provide Healthways'
SilverSneakers Fitness Program. The understanding between the two
parties has been in existence since 2004. The SilverSneakers
curriculum may be availed by over 30,000 qualified CDPHP Medicare
Advantage enrollees in 24 counties of New York state.
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The most recent CDPHP SilverSneakers annual member survey reveals
favorable results. As per the findings in 2011, about two-thirds of
CDPHP and SilverSneakers members stated their health to be either
very good or excellent. This metric is much higher than the
nation-wide figure of 30% for the elderly.
Set up in 1984, CDPHP is a non-profit health plan which provides
health insurance schemes to enrollees in 24 counties of New York.
The Healthways model encourages people to make favorable lifestyle
changes that lead to enhanced well-being, reduced healthcare costs,
improved performance and economic value for customers. 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
Due to its unique scalable business model, Healthways shares may
present a long-term investment opportunity, although it faces many
challenges in the short term.
Healthways is the leader in a strategically critical and rapidly
evolving part of the health care services market. Its fitness
program (SilverSneakers Fitness Program) 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
Express Scripts Holding Company
) among others.
We currently have an Outperform recommendation on Healthways. The
stock retains a Zacks #1 Rank, which translates into a short-term
Strong Buy rating.