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WellCare Health Boosts Arizona Presence with New Buyout
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WellCare Health Plans, Inc. recently entered into a definitive agreement to acquire assets like Medicaid membership and certain provider contracts from Tenet Healthcare Corp.'s (THC - Free Report) affiliate, Phoenix Health Plan.
The company expects the transaction to culminate by the second quarter of 2017, subject to pending regulations and other mandatory closing conditions. The transaction amount remained undisclosed. The company is likely to fund the buyout with available cash on hand.
As of Dec 1, 2016, Phoenix Health Plan offers health benefits to more than 50,000 Medicaid beneficiaries in Maricopa County, AZ. Interestingly, Maricopa County is well known as the state's largest geographic service area.
The latest transaction will strengthen WellCare Health's foothold in Arizona. In addition, the transaction is expected to complement the Zacks Rank #1(Strong Buy) Health Maintenance Organization's (HMO) pending buyout of Care1st Health Plan Arizona. Notably, the latest buyout will mark the second acquisition in the state this year.
WellCare Health believes that joining forces with the state and local providers will help it in delivering superior quality, cost-effective health care solutions to Arizona???s Medicaid beneficiaries. As a result, these beneficiaries will be able to lead much healthier and better lives. Therefore, the buyout will enable WellCare Health to work with Phoenix Health Plan and Arizona Health Care Cost Containment System, in turn, ensuring a hassle-free transition for members.
Year to date, shares of WellCare Health gained 73.9%, significantly outperforming the Zacks categorized Health Maintenance Organization (HMO) industry's growth of 21.5%. Substantial improvement, both in the bottom line and top line, drove the outperformance. Robust premium and investment income performance, along with a solid liquidity position backed by strong cash flow generation were particularly responsible for the upside. Further, a strong capital position has not only increased the WellCare Health's shareholder value but also enabled the company to invest in prudent initiatives to accelerate growth.
Stocks to Consider
Investors interested in other stocks from the same space might consider Magellan Health, Inc. and UnitedHealth Group Incorporated (UNH - Free Report) .
Magellan Health deals in the healthcare management business in the United States. The company has delivered positive surprises in three of the last four quarters, with an average beat of 42.6%. The company sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
UnitedHealth Group operates as a diversified health and well-being company in the United States. The company has delivered positive surprises in all of the last four quarters, with an average beat of 3.9%. The company holds a Zacks Rank #2 (Buy).
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WellCare Health Boosts Arizona Presence with New Buyout
WellCare Health Plans, Inc. recently entered into a definitive agreement to acquire assets like Medicaid membership and certain provider contracts from Tenet Healthcare Corp.'s (THC - Free Report) affiliate, Phoenix Health Plan.
The company expects the transaction to culminate by the second quarter of 2017, subject to pending regulations and other mandatory closing conditions. The transaction amount remained undisclosed. The company is likely to fund the buyout with available cash on hand.
As of Dec 1, 2016, Phoenix Health Plan offers health benefits to more than 50,000 Medicaid beneficiaries in Maricopa County, AZ. Interestingly, Maricopa County is well known as the state's largest geographic service area.
The latest transaction will strengthen WellCare Health's foothold in Arizona. In addition, the transaction is expected to complement the Zacks Rank #1(Strong Buy) Health Maintenance Organization's (HMO) pending buyout of Care1st Health Plan Arizona. Notably, the latest buyout will mark the second acquisition in the state this year.
WellCare Health believes that joining forces with the state and local providers will help it in delivering superior quality, cost-effective health care solutions to Arizona???s Medicaid beneficiaries. As a result, these beneficiaries will be able to lead much healthier and better lives. Therefore, the buyout will enable WellCare Health to work with Phoenix Health Plan and Arizona Health Care Cost Containment System, in turn, ensuring a hassle-free transition for members.
Year to date, shares of WellCare Health gained 73.9%, significantly outperforming the Zacks categorized Health Maintenance Organization (HMO) industry's growth of 21.5%. Substantial improvement, both in the bottom line and top line, drove the outperformance. Robust premium and investment income performance, along with a solid liquidity position backed by strong cash flow generation were particularly responsible for the upside. Further, a strong capital position has not only increased the WellCare Health's shareholder value but also enabled the company to invest in prudent initiatives to accelerate growth.
Stocks to Consider
Investors interested in other stocks from the same space might consider Magellan Health, Inc. and UnitedHealth Group Incorporated (UNH - Free Report) .
Magellan Health deals in the healthcare management business in the United States. The company has delivered positive surprises in three of the last four quarters, with an average beat of 42.6%. The company sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.
UnitedHealth Group operates as a diversified health and well-being company in the United States. The company has delivered positive surprises in all of the last four quarters, with an average beat of 3.9%. The company holds a Zacks Rank #2 (Buy).
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>