Humana Inc. (HUM - Free Report) entered into an agreement with integrated healthcare system AtlantiCare, which offers in-network access for Humana Medicare Advantage members. Patients can now avail of healthcare services at the system’s hospital campuses in Atlantic City and Pomona along with its outpatient facilities in the Southeastern New Jersey.
However, terms of the deal remain confidential.
Details of the Deal
The contract, which is already in effect, adds in-network access for Humana Medicare Advantage Health Maintenance Organization (HMO), Preferred Provider Organization (PPO) and Private Fee-for-Service (PFFS) health plan members at facilities like AtlantiCare Regional Medical Center’s Atlantic City and Mainland campuses, AtlantiCare Urgent Care centers and AtlantiCare Surgery centers.
Notably, the deal also provides in-network access for Humana Medicare Advantage members who need care from clinicians who are employees of AtlantiCare.
Rationale Behind the Initiative
This deal will enable Humana gain a strong foothold in the southeastern region of New Jersey. The company is committed to cater optimum healthcare to its members.
To that end, it constantly takes up initiatives to mete out affordable services, yet with better quality.
Humana’s Medicare business has been performing strongly over the past many quarters. The full-year individual Medicare Advantage membership is now anticipated to be around 330,000-360,000 members, up from the earlier projected range of 300,000-350,000 members. In the past decade, the company saw maximum growth in Individual Medicare Advantage during 2019, which is pretty impressive.
Lately, the health insurance giant expanded its value-based programs with the launch of two national programs for the members of certain Humana Medicare Advantage (MA) plans. It came up with programs to cover coronary artery bypass grafting and total shoulder replacement procedures.
All these measures poise Humana well for growth.
Zacks Rank and Price Performance
Shares of this presently Zacks Rank #2 (Buy) company have surged 43.8% in a year’s time compared with the industry’s rally of 21.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The price performance looks stronger than other companies’ stock movements in the same space, such as Centene Corporation (CNC - Free Report) , Anthem Inc. (ANTM - Free Report) and Molina Healthcare, Inc. (MOH - Free Report) , which have gained 30.1%, 4.3% and 57.3%, respectively, in the same time frame.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>