Leading well-being enhancement company
) recently announced a 5-year contract renewal with Australia's
prominent not-for-profit private health insurer, the Hospitals
Contributions Fund (HCF). This contract renewal was based on the
anticipated success of the company's My Health Guardian,
Australia's longest and largest health management program.
As per the agreement, HCF in going to invest A$100 million
over the coming years which will help further advancement of this
program. Healthways, which is currently focusing on expansion
through partnerships, is optimistic about this renewal. The
company expects this deal to improve outcomes and participant
benefits, which will reinstate the value of Healthways' health
and well-being solutions worldwide.
We are optimistic about the My Health Guardian program as
recent data suggests that chronic illness, which currently
accounts for 70% of Australia's national disease burden, is going
to increase to 80% by 2020. In addition, HCF's strong customer
base of 1.5 million Australians will add impetus to the company's
growth. This particular model from Healthways encourages people
to make favorable lifestyle changes that lead to enhanced
well-being, reduced healthcare costs, improved performance and
economic value for customers.
According to Heathways, 32% of the My Health Guardian plan
users have successfully improved their Perception of Health
Score, 46% have reported better medication management as well as
lower lifestyle risk factors such as smoking rate, physical
inactivity, obesity and poor diet.
Healthways has invested in technology platforms that provide
scalable support for large populations. The company has alliances
with a majority of the U.S. health plans and has a huge
clientele. 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.
Currently, Healthways retains a Zacks Rank #3 (Hold). Among
other stocks in the industry,
Wright Medical Group Inc.
) appear impressive. These stocks carry a Zacks Rank #1 (Strong
NATUS MEDICAL (BABY): Free Stock Analysis
HEALTHWAYS INC (HWAY): Free Stock Analysis
RESMED INC (RMD): Free Stock Analysis Report
WRIGHT MEDICAL (WMGI): Free Stock Analysis
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