Wayne, Pa.-based Renaissance Health Network has chosen
physician-directed population health solution Well-Being Direct
) to improve the quality of its population health management
solutions. Renaissance Health Network provides Population Health
Management services to 150,000 people, including about 32,000
HWAY's Well-Being Direct will help Renaissance Health Network - a
group of roughly 250 independent primary care physicians - to
monitor their patients closely and efficiently manage their
Well-Being Direct makes forecasting models to detect patients who
are susceptible to high-cost utilization or poor outcomes. As
soon as these patients are identified, physicians can improve
their well being by several interventions.
Presently, interventional treatment procedure is highly
recommended by physicians as they have better patient outcomes.
According to Healthways, patients undergoing regular counseling
have 35% to 55% more chance to quit smoking and making changes to
their diet and lifestyle than those who only sit back and read
about how to improve well-being.
Headquartered in Nashville, Tenn., Healthways makes available
targeted and tailored intervention for each person, regardless of
the individual's health condition, age or health care payor. Its
fact-based prevention and well-being services providing specific
and personalized intervention are presented to consumers in a
variety of formats, such as phone, mail, and Internet.
In the second quarter of the year, Healthways reported
second-quarter 2013 loss per share of 3 cents in sharp contrast
to the year-ago earnings of 15 cents per share. However, the loss
was narrower than the Zacks Consensus Estimate and the company's
expectations of a loss of 5 cents per share.
Revenues declined 4.7% year over year to $162.3 million in the
quarter, trailing the Zacks Consensus Estimate of $171 million.
However, upon exclusion of the two terminal contracts, revenues
improved 11.7% from the prior-year quarter.
HWAY affirmed its sales guidance for 2013. The company continues
to expect sales in a band of $710 million-$750 million,
reflecting a rise of 5%-11% year over year. It expects higher
revenues for 2013 despite a drop of $80 million on account of the
termination of two contracts. Healthways expects higher sales in
the second half of 2013 as fresh contracts inked in 2012 take off
in the upcoming quarters.
Healthways tweaked its outlook for bottom line to reflect the
effect of its cash convertible senior notes due 2018. The company
expects earnings per share of about 18 cents-28 cents compared
with the prior outlook of 25 cents-35 cents for 2013.
We are disappointed about HWAY's continued losses and lower
year-over-year revenues since the beginning of the year as well
as its tapered guidance. Currently, Healthways carries a Zacks
Rank #4 (Sell). The company expects to release its third quarter
results tomorrow after the closing bell.
While we prefer to avoid this stock, other scrips that are worth
a look in the medical services industry include
) with a Zacks Rank #2 (Buy). We also consider
Bio-Rad Laboratories, Inc.
INSYS Therapeutics, Inc.
), both with a Zacks Rank #1 (Strong Buy), from the medical
products industry as worth considering at present.
BIO-RAD LABS -A (BIO): Free Stock Analysis
HEALTHWAYS INC (HWAY): Free Stock Analysis
INSYS THERAP (INSY): Free Stock Analysis
OMNICARE INC (OCR): Free Stock Analysis
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