) has forged a new five-year agreement with SulAmérica, the
largest independent health insurer in Brazil, to flag off Latin
America's most comprehensive private health and well-being
improvement program. However, not benefiting much from this news,
shares of HWAY declined 14 cents, closing the session at $14.03
on Dec 6.
However, this information failed to uplift the sentiments of the
investment community as the above contract was announced in the
month of April. Moreover, the non-renewal of the Cigna contract
was a major setback for the company, as it is believed that the
company is still trying to recover from its losses. Further, a
sluggish US economy and uncertainty over the US healthcare reform
measures hamper the future growth prospects of Healthways.
In April, both the organizations had announced a joint strategic
alliance with the motive of boosting well-being and performance
improvement for employers and individuals in Brazil.
SulAmérica is the forerunner in the Brazilian private healthcare
insurance market that is the second largest in the world,
covering nearly 25% of the country's population. It is optimistic
about its extended collaboration with Healthways, and seeks to
enhance value for its employer clients in the form of healthier,
happier and more productive employees.
Per the new agreement, both Healthways and SulAmérica will launch
innovative programs in 2014 that will give the latter's members a
clear idea of their unique well-being scores. Customized plans
and a diverse portfolio of tailor-made programs will cater to the
needs of SulAmérica's customers to being about lifestyle and
This agreement records the largest population ever managed under
a single private contract in Latin America. As an initiative to
start off the program, a section of SulAmérica's members
participated in Healthways' Well-Being Assessment to measure
their well-being status.
Healthways looks forward to this partnership to deliver long-term
value to SulAmérica's customers by allowing their employees to
lead disease-free, healthy lives. This, in turn, will spell
wonders for their organizations in the form of greater
competitive strength and improved financials, gained on the back
of high-performing employees.
Currently, Healthways carries a Zacks Rank #5 (Strong Sell).
However, investors interested in the industry can look at stocks
Air Methods Corp.
BG Medicine, Inc
Acadia Healthcare Company, Inc.
). While Air Methods sports a Zacks Rank #1 (Strong Buy), BG
Medicine and Acadia Healthcare carry a Zacks Rank #2 (Buy).
ACADIA HEALTHCR (ACHC): Free Stock Analysis
AIR METHODS CRP (AIRM): Free Stock Analysis
BG MEDICINE INC (BGMD): Free Stock Analysis
HEALTHWAYS INC (HWAY): Free Stock Analysis
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