Kentucky based health care company,
) has inked a collaborative Accountable Care deal with St. Luke's
University Health Network. St. Luke's University is an integrated
Network in the north eastern Pennsylvania area, comprising six
acute care hospitals and over 1400 physicians. This initiative is
in sync with the company's agenda to provide high-quality care to
medical members at an affordable price.
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This agreement will allow Humana to foray into the Pennsylvania
region and provide its HMO and PPO plan designs throughout
eastern Pennsylvania in association with St. Luke's hospitals,
physicians and affiliated facilities. In turn, improvement in
medical member outcomes, quality of care and reduction in costs
are slated to fetch rewards for these physicians. These
incentives are thus aimed to bring more cost-effective and
superior quality patient care for Humana members. St Luke's was
chosen in particular for this Accountable Care agreement by
Humana, as the locations allow beneficiaries easy access to the
Humana's Accountable Care initiative is similar to an Accountable
Care Organization (ACO). An ACO is a collaboration of
health care providers who voluntarily form alliances to provide
coordinated high quality care to patients at lower costs. In line
with the objectives of an ACO, the aforementioned deal will
provide a number of personalized care and population management
tools including predictive analytics, chronic care, disease
management and wellness programs.
Humana currently consist of 33000 primary care physicians and is
in Accountable Care association with 900 organizations. The above
deal is an extension to its existing portfolio. Initiatives like
these are intended to improve the health of Americans as well as
to offer high quality health care to patients. We believe an
expansion of Humana's services in Pennsylvania and provision of
cost-effective care should enhance the membership base of the
company, thereby paving the way for more revenue generation.
Other healthcare stocks that have formed ACOs in recent times
). Aetna agreed to form an ACO with PinnacleHealth System this
month, whereas Cigna started a Collaborative Accountable Care
initiative with University Hospitals Accountable Care
Organization (UHACO) last month.
Humana currently carries a Zacks Rank #3 (Hold). However, some
better-ranked stocks in the healthcare services space include
) and Cigna. Both the stocks carry a Zacks Rank #2 (Buy).