Well-being enhancement company
Healthways
(
HWAY
) and
Coventry Health Care
(
CVH
) recently revealed an understanding to provide the SilverSneakers
Fitness Program to Coventry's qualified Medicare Advantage
enrollees in 13 states. Starting from January 1, 2013, as per a
three year deal, SilverSneakers will become available to enrollees
in the states of Wyoming, Utah, Oklahoma, Texas, Nebraska, North
Carolina, Ohio, Arkansas, Florida, Georgia, Missouri, Kansas and
Illiniois.
Coventry has provided fitness regimens to its Medicare Advantage
enrollees since 2009. Coventry and Healthways started their
relationship in 2012 by providing SilverSneakers to eligible
Coventry enrollees in Florida.
For health plans inclusive of SilverSneakers provision, Coventry's
Medicare Advantage enrollees will have complete and free access to
SilverSneakers facilities throughout the U.S.
Bethesda, Maryland based Coventry Health Care is a large managed
health care company. The company provides a complete portfolio of
fee based and risk products including Medicare programs.
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
base.
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
Express Scripts
(
ESRX
) among others.
We currently have an Outperform recommendation on Healthways. The
stock retains a Zacks #1 Rank, which translates into a short-term
Strong Buy rating.
COVENTRY HLTHCR (CVH): Free Stock Analysis
Report
EXPRESS SCRIPTS (ESRX): Free Stock Analysis
Report
HEALTHWAYS INC (HWAY): Free Stock Analysis
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