Magellan Health, Inc. (MGLN - Free Report) recently partnered with Livongo Health, Inc. , which is an Applied Health Signals company. Livongo is renowned for providing clinical-based insights to its members, which in turn, has resulted in improved health outcomes for people plagued with chronic diseases.
By virtue of this partnership, Magellan customers and members, who already have access to the company’s healthcare solutions, will now also have access to Livongo for Behavioral Health. This digital solution, which encompasses more than 15 most common health conditions, can be availed throughout the year on a 24*7 basis.
What makes Livongo for Behavioral Health noteworthy is that it makes use of varied evidence-based interventions for promoting self-care.
Coming back to the strategic relationship, the tie-up will integrate Magellan’s deep clinical expertise and Magellan Health Studio’s human-centered design approach with Livongo’s digital capabilities, which will lead to new product developments and enhanced behavioral health services.
The collaboration, needless to say, will provide access to consumer-driven digital self-care intended to bring about better mental and behavioral health conditions for Magellan customers and members.
Magellan’s latest move bodes well as Livongo seems to be a suitable fit for catering to the mental and behavioral health needs of its members and customers. It has to be noted that Livongo has a strong client base exceeding 1,300, which comprises more than 30% of the Fortune 500, four out of the top seven health plans, health systems, and government organizations.
Notably, Teladoc Health, Inc. (TDOC - Free Report) , another stock in the medical space, entered into a definitive merger agreement with Livongo last month, with both the healthcare providers excelling in virtual health and chronic condition management.
Shares of Magellan, which carries a Zacks Rank #3 (Hold), have gained 15.6% in a year compared with the industry’s rally of 20%.
Moreover, the Livongo for Behavioral Health will be extremely beneficial in the current scenario, where around half of the American adults are plagued with mental health issues aggravated further by the COVID-19 pandemic.
Furthermore, Magellan has always been committed to catering to the behavioral health needs of people. Case in point, its healthcare business unit, Magellan Healthcare, partnered with Neuromotion in July through which specific Magellan members can avail — Mightier — an in-home digital platform for children. The fact that Magellan has brought this cost-effective platform bodes well, particularly at a time when the pandemic besides affecting most adults, has also taken a toll on the mental health of children restricted within their homes.
Lastly, Magellan continues to benefit from strength in its behavioral health, specialty health and pharmacy businesses, which has enabled it to expand existing capabilities. It makes constant efforts to upgrade its specialty health services and even explore newer areas of this business.
The healthcare provider has been undergoing transformation efforts, which are likely to result in lower operating costs and drive margins. To this effect, these initiatives are expected to result in net savings of nearly $30 million by 2021 and nearly $75 million by 2022. All such strong fundamentals are likely to poise the company well for long-term growth.
A Stock to Consider
A better-ranked stock in the medical space is Select Medical Holdings Corporation (SEM - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Select Medical beat estimates in each of the trailing four quarters, the average surprise being 212.61%.
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