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Humana Partners Einstein Healthcare for Value-Based Care

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Humana Inc. (HUM - Free Report) recently entered in to a value-based agreement with Einstein Healthcare Network. Per the agreement, both the companies would join forces to offer improved services to Humana’s Medicare Advantage (MA) members.

Value-based care has gained prominence in recent years in the healthcare industry. Health insurers have been forming strategic alliances for adopting this model that aims at providing coordinated, accessible, affordable and personalized health care to patients.

The deal, which extends the existing network contract between both the companies, would continue to provide access to Einstein Healthcare’s wide range of health care services to Humana’s MA members. The agreement also combines Humana with Einstein Healthcare’s Accountable Care Organization, Einstein Care Partners, in order to improve patients’ healthcare experience and outcomes in the Philadelphia area.

Humana’s wide presence of value-based care with more than 900 value-based relationships across 43 states and Puerto Rico impresses. The company had 1.9 million individual MA members as of Sep 30, 2017 along with 149,000 commercial members covered by 51,500 primary care providers.

Moreover, this new partnership will allow Humana’s MA members to spend more personal time with health professionals and enjoy personalized care customized for each person’s unique health situation. It would also provide Humana’s MA members access to proactive health screenings and programs focused on preventing illness. This value-based model would also offer better health solutions for people living with chronic conditions so that they can avoid health complications in an easier way.

The partnership would also build on updated technologies such as data analytics that would better connect physicians so that the coordinated effort can ensure better health outcomes for the patients. Moreover, the fee-for-service payment method for the physicians that considers the quality of the services being provided instead of the quantity, will also ensure better results.

This value-based care program aligns well with Einstein Healthcare’s mission to improve population health outcomes and reduce health disparities. It has a vision of providing high-quality and low-cost health care to the communities they serve.

Humana’s shares have gained 26.7% year to date, underperforming the industry’s rally of 44.1%. However, the company’s strategic alliances and strong fundamentals are likely to favor the stock going forward.

 

Zacks Rank & Other Stocks to Consider

Humana sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here

Investors interested in the same space can also consider some other stocks like Triple-S Management Corporation , Centene Corporation (CNC - Free Report) and The Joint Corp. (JYNT - Free Report) . While Triple-S Management sports a Zacks Rank #1, the other two stocks carry a Zacks Rank #2 (Buy).

Triple-S Management delivered positive surprises in two of the last four quarters, with an average beat of 74%. The stock has gained 34.8%, slightly outpacing the industry.

Centene delivered positive surprises in all of the last four quarters with an average beat of 10.6%. Its shares have returned 66.2% year to date, beating the industry mark.

Joint Corp delivered positive surprises in three of the last four quarters, with an average beat of 5.5%. Its shares have rallied 102.6% year to date, outperforming the industry.

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