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Humana's Unit to Launch Primary Care Centers for Seniors

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Humana Inc.’s (HUM - Free Report) subsidiary Partners in Primary Care recently announced the first phase of its three-year expansion project. It will open 20 new senior-focused primary care centers in a year’s time with eight in Las Vegas and two in the Shreveport-Bossier City, LA.  The company also has plans to penetrate further in Houston with 10 more centers.

Partners in Primary Care, which currently operates 48 primary care centers in Kansas, Missouri, North Carolina, South Carolina, Texas and Florida, provides comprehensive and standard care to patients from various Medicare Advantage health plans. In early 2020, Humana declared that this unit entered into a joint venture with Welsh, Carson, Anderson & Stowe that has prospects to double the expansion of its senior-focused primary care centers over the span of next three years.

The communities are expected to get better health outcomes with the help of this strategic initiative. The staff members are specially trained to serve the aging population in the best possible ways. Doctors spend more time with their patients while care teams make diligent efforts to create some tailor-made care plans for the benefit of patients, providing them with the best healthcare services. They will continue to focus on the seniors’ well-being and their unique health needs in the new centers as well.

With the introduction of these centers, Humana remains committed to providing advanced care to the senior citizens in the underserved locations.

Humana’s Medicare business has been performing strongly over the last many quarters.  This is evident from 54% Medicare membership growth from 2013 to 2018. Although the same dipped 1% in 2019, Individual Medicare membership rose 17.1% year over year in the same time frame, which is a positive. The full-year 2020 individual Medicare Advantage membership strength is anticipated to be around 300,000-350,000. Over the past decade, the company saw maximum growth in Individual Medicare Advantage during 2019, which is pretty impressive. All the above-mentioned moves further bode well for the company.

Shares of this Zacks Rank #2 (Buy) company have soared 61.4% in a year’s time, outperforming its industry’s rally of 19.4%. The stock return looks solid when compared to other companies in the same space, such as Molina Healthcare Inc. (MOH - Free Report) , Anthem Inc. and Centene Corporation (CNC - Free Report) , which have gained 20%, 6.4% and 22.9%, respectively, in the period. All three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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