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Humana (HUM), Evergreen Nephrology Partner to Improve Health Outcomes

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Humana Inc. (HUM - Free Report) recently announced its partnership with Evergreen Nephrology to launch a new value-based kidney care program. This new program is aimed at enhancing the quality of care and improving health outcomes for patients suffering from chronic kidney diseases.

This move bodes well for Humana as it will help with better retention of Medicare Advantage clients. Medicare Advantage members who qualify for this program will be able to access Evergreen Nephrology’s professionals, helping them get whole-person care.

Evergreen Nephrology has nephrology partnerships in various states like Alabama, California, Colorado, etc. This is a time opportune move as more than one in seven Americans suffer from chronic kidney disease. HUM aims to continually expand and enhance its patient-friendly kidney care programs.

This move highlights HUM’s focus on value-based care models. By offering comprehensive and patient-centered care, HUM is aiming to improve retention rates. Moreover, its value-based care models will help in managing chronic conditions effectively. This, along with better patient outcomes, poises HUM well to reduce overall healthcare costs and hence lower benefits.

Humana derives a major portion of its revenues from Medicare Advantage premiums. Its Medicare Advantage membership improved in the second quarter, benefiting its results. However, the benefits expense ratio deteriorated 270 bps, highlighting an increase in medical cost trends. HUM expects Medicare Advantage membership to grow 225,000 in 2024.

HUM’s Price Performance

Shares of Humana have lost 1.6% in the past three months against the industry’s 15.1% growth.

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Humana’s Zacks Rank and Stocks to Consider

HUM currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Medical space are Tenet Healthcare Corporation (THC - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) . While Tenet Healthcare sports a Zacks Rank #1 (Strong Buy), Encompass Health and Ensign Group carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tenet Healthcare’s earnings surpassed estimates in each of the last four quarters, the average surprise being 58.50%. The Zacks Consensus Estimate for THC’s 2024 earnings indicates a rise of 53.3% from the year-earlier actual. The consensus mark for THC’s earnings has moved 4.8% north in the past 30 days.

The bottom line of Encompass Health outpaced estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for EHC’s 2024 earnings indicates a rise of 14.3%, while the same for revenues implies an improvement of 10.6% from the respective year-earlier actuals. The consensus mark for EHC’s earnings has moved 1.7% north in the past 30 days.

Ensign Group’s earnings surpassed estimates in each of the last four quarters, the average surprise being 1.4%. The Zacks Consensus Estimate for ENSG’s 2024 earnings indicates a rise of 14.1%, while the consensus mark for revenues implies an improvement of 13.1% from the respective year-earlier actuals. The company has witnessed three upward estimate revisions compared with no downward revisions over the past 30 days for 2024 earnings.

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