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Healthways (HWAY) Rides High on Strategic Partnerships - Analyst Blog

Global well-being improvement leader, Healthways, Inc.HWAY , is currently focusing on strategic partnerships in a bid to expand its business. The company recently inked a deal with MedAssets MDAS , close on the heels of a joint venture with Sul America S.A. and EmblemHealth, and the expansion of its long-term relationship with CareFirst BlueCross BlueShield (CareFirst).

Healthways' strategic partnership with MedAssets intends to expand patient access to the former's Dr. Dean Ornish Program for Reversing Heart Disease (Ornish Reversal Program).

Under the terms of the five-year agreement, Healthways has contracted MedAssets as its sales partner to ramp up the deployment of the Ornish Reversal Program in hospitals, health systems and physician organizations.

The Ornish Reversal Program is reportedly one of the most scientifically proven platforms in lifestyle medicine that finds use in the treatment of heart disease and other chronic conditions. In addition to treating and reversing heart ailments, the program is also effective for type 2 diabetes, early-stage prostate cancer and various other chronic diseases.

A few days back, Healthways also announced collaboration with SulAmerica Servicos de Saude S.A., a subsidiary of Sul America S.A. - one of the largest independent insurers in Brazil. The association with Sul America S.A. is aimed at boosting sales of Healthways' well-being improvement solutions in the Brazilian market.

In February, Healthways entered into a two-year contract with EmblemHealth to help high-risk commercial, Medicare and Medicaid members efficiently manage their chronic conditions.

Prior to that, in January, Healthways expanded its existing relationship with CareFirst BlueCross BlueShield (CareFirst) through a five-year contract. Per the deal, Healthways' disease management and well-being initiatives will be available as part of the CareFirst Total Care and Cost Improvement (TCCI) plan. Under the terms of the deal, CareFirst eligible members in Maryland, Washington, D.C. and portions of Northern Virginia will be able to access Healthways' population health management solutions.

We feel these partnerships will help Healthways gain further market traction, which, in turn, will result in better top-line growth for the company.

Zacks Rank

Currently, Healthways has a Zacks Rank #3 (Hold). Better-ranked medical stocks at the current moment include Affymetrix AFFX and Abaxis ABAX . Both the stocks sport a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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