Back to top

Analyst Blog

U.S. health insurer Aetna Inc. (AET - Analyst Report) has agreed to form an Accountable Care Organization (ACO) with Bon Secours Health System. This is in sync with the company’s effort to improve safety and quality of patient care and make health care more affordable.
An ACO is a collaboration of health care providers, who voluntarily form alliances to provide coordinated high quality care to patients. An ACO is accountable for the quality, cost and overall care offered to members. By focusing on the needs of patients and linking payments to outcomes, the model is intended to improve the health of individuals and communities and curb rising health care costs.
Aetna will provide its technology and services via its Healthagen unit. The combined capabilities of both the companies will help to coordinate all aspects of health care of Medicare beneficiaries.The computer based records will enable two way exchange of health information across a patient’s entire care team and equip physicians with the patient’s medical history.
The program will serve 57,000 fee-for-service Medicare beneficiaries in Kentucky, South Carolina, Virginia and New York.
Via this ACO Aetna aims to provide a more synchronized, personalized experience for patients; lower co-pays and improve healthcare outcomes.
ACOs or collaborative accountable care is one of the several ways by which President Obama wants to improve the quality of health of all Americans. It is viewed as a tool that would deliver seamless, high quality care for the overall population.
The Health Care Reform called for such an arrangement in order to trim unnecessary expenses due to a lack of coordination between multiple physicians and other providers. Most Americans with multiple chronic conditions receive care from multiple physicians and it has been observed that a few of them receive inadequate care.
A large percentage of the sick population also ended up being victims of medical errors and faced hospital readmissions within days of their discharge. Thus, ACOs were formed to reduce the exorbitant amounts spent due to lack of managed care.
Other health insurers like UnitedHealth Group Inc. (UNH - Analyst Report) and Cigna Corp. (CI - Analyst Report) are also aggressively forming ACOs. Going forward, we expect such patient-centered collaborations to grow rapidly.
Aetna currently retains a Zacks Rank #1 (Strong Buy). Another health care provider under our coverage, Molina Healthcare, Inc. (MOH - Analyst Report), is also similarly placed with a Zacks Rank #1.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%