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Humana (HUM) Inks Deal with Doylestown to Launch ACO

Humana Inc.HUM has entered into yet another partnership agreement pertaining to its Accountable Care portfolio. This time the health maintenance organization has teamed up with Doylestown Health Partners to launch an Accountable Care model in southeastern Pennsylvania.

Per the deal, Doylestown Health partners will help Humana provide enhanced health care for its Medicare Advantage (MA) members in Bucks and Montgomery counties.

Under an Accountable Care agreement, health and well-being companies as well as physician practices come forward to collaborate and establish an Accountable Care Organization (ACO). An ACO enables the participants to utilize each others' resources and expertise to provide coordinated high quality care to patients at affordable costs.

In line with the terms of an ACO, the deal will be beneficial to both the entities. While Humana will benefit from Doylestown Health Partners' knowledge and strong foothold in the region, the latter will be able to utilize Humana's population health capabilities, including predictive analytics, chronic disease management and wellness programs, to its integrated health care network

Humana has an almost 30-year long history of Accountable Care and serves a huge 1.5 million MA member base. The company boasts of more than 900 Accountable Care relationships across 43 states and Puerto Rico. Statistical evidences show that Humana members experienced lesser emergency room visits and hospital admissions. They also showed improved health conditions, particularly for individuals with diabetes and cardiovascular disease, thanks to the ACO relationships.

In Aug 2015, Humana entered into an ACO agreement with King's Daughters' Health. Per the deal, King's Daughters' will deliver enhanced health care for Humana's MA members in Madison, IN. King's Daughters' currently caters to five counties in Southeast Indiana and North Central Kentucky.

Humana currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the health maintenance organization (HMO) space are Centene Corp. CNC , Nobilis Health Corp. HLTH and UnitedHealth Group Incorporated UNH . All three stocks hold a Zacks Rank #2 (Buy).

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HUMANA INC NEW (HUM): Free Stock Analysis Report

UNITEDHEALTH GP (UNH): Free Stock Analysis Report

CENTENE CORP (CNC): Free Stock Analysis Report

NOBILIS HEALTH (HLTH): Free Stock Analysis Report

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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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