) recently revealed that the former has lengthened its contract to
make Healthways' SilverSneakers Fitness Program available for
eligible enrollees till 2016.
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HUMANA INC NEW (HUM): Free Stock Analysis
HEALTHWAYS INC (HWAY): Free Stock Analysis
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At present, over 2.1 million Humana enrollees are eligible to
participate in SilverSneakers. The Humana Medicare Advantage and
Medicare Supplement programs have provided enrollees with the
SilverSneakers social support and exercise regimen since 2004.
The SilverSneakers Fitness Program 2011 Annual Member Survey
reported that Humana SilverSneakers enrollees stated better health
and lower incidence of disease than the nationwide averages for
elderly Americans. 87% of incoming members stated that they
exercised twice as frequently in 2011 than they did before taking
part in the SilverSneakers fitness routine.
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) 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 competes with
) among others.
We currently have a Neutral recommendation on Healthways. The stock
retains a Zacks #3 Rank, which translates into a short-term Hold