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Tenet (THC) Signs Deal to Provide Services to Cigna Members

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Tenet Healthcare Corp. (THC - Free Report) recently announced that it has entered a new, multi-year deal with Cigna Corporation (CI - Free Report) . With this deal, Tenet will be covering Cigna members under its commercial health plans with seamless in-network access to Tenet providers, which includes hospitals, outpatient centers as well as physicians. Moreover, Medicare beneficiaries insured by Cigna-HealthSpring Medicare Advantage plan will receive service from all Tenet facilities, which will continue to act as in-network providers.

Tenet Healthcare is optimistic about providing the best results to its patients, employees and communities with this transaction. Notably, Cigna members will now be able to enjoy in-network access of Tenet Healthcare. It is needless to say that this initiative is part of the company’s strategy of solid inorganic growth. Over the past many quarters, Tenet Healthcare has made numerous acquisitions, partnerships and strategic alliances, aimed primarily at bolstering scale of business, operating capacity and expanding geographical presence.

In the past too, the company has tied up with industry biggies such as Blue Cross Blue Shield of Texas (BCBSTX), Cigna, Aetna, UnitedHealth, Humana, to name a few. In 2016, Tenet Healthcare inked a deal with Centene to enable the members of Centene and its newly acquired unit — Health Net — to access Tenet Healthcare’s hospitals and outpatient centers. It also renewed its membership with UnitedHealth and BCBSTX. In April 2018, the company purchased the remaining 15% ownership interest in United Surgical Partners International, which is owned by Welsh, Carson, Anderson & Stowe. Significant buyouts of Emanuel Medical, Texas Regional Medical Center Vanguard Health Systems are worth mentioning as well.

Shares of this Zacks Rank #3 (Hold) company have gained 7.2% in a year’s time, underperforming its industry’s growth of 17.4%.  The company’s revenues have been declining over the last few quarters owing to reduced admissions, inpatient and outpatient surgeries, emergency department visits and total outpatient visits, which in turn, has led to the underperformance. However, inorganic growth strategies taken by the company are likely to help the shares recover.


Stocks to Consider

Investors interested in the medical sector can check out some better-ranked stocks like Molina Healthcare, Inc (MOH - Free Report) and Anthem, Inc. .

Molina offers Medicaid-related solutions to meet the health care needs of low-income families and individuals. It sports a Zacks Rank #1 (Strong Buy). In the trailing four quarters, the company delivered average four-quarter beat of 82.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Anthem operates as a health benefits company in the United States. A Zacks #2 Ranked player, the company managed to pull off average trailing four-quarter positive surprise of 5.11%.

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