Humana Inc. (HUM - Free Report) is moving one step ahead in its endeavors to amalgamate technology and healthcare to create healthcare awareness among individuals. Towards this end, Humana has recently partnered with leading provider of home health monitoring services, Valued Relationships Inc. (VRI). However, the partnership, announced on Oct 7, 2013, probably failed to cheer investors’ sentiment as the company’s shares dropped nearly 2% on Oct 8.
The purpose of the alliance is to prevent the grave long-term effects of medical emergencies faced by Humana’s medical members. Moreover, through the partnership the company also intends to address and effect a reduction in excessive hospital admissions, re-admissions and emergency room visits.
VRI medical system actively monitors clients across the country through its medical alert system. With the usage of VRI medical system, access to healthcare services becomes easy, particularly for the aged, as patients just need to push a button on the device. The Care Center representative immediately responds to provide the requisite service. Thus this system makes healthcare delivery easy, improves care and at the same time reduces hospitalization costs. Humana intends to provide this technology to its Medicare advantage members and improve the quality of care provided. We believe this endeavor will help Humana retain its clients and also procure more members, thereby enhancing its top line going forward.
Previously in July this year, Humana commenced PERS – a free personal emergency response system for Medicare advantage members identified by Humana’s national chronic care management division. With the recent partnership in hand, the company aims to bring in 500 Humana Medicare members across the nation under the program.
In a similar move, last week, Humana secured a strategic retail partnership agreement with CVS/pharmacy, the retail division of CVS Caremark Corporation (CVS - Free Report) . Through this partnership, Humana intended to create awareness among individuals and their families about various healthcare coverage options under the Affordable Care Act (ACA).
Humana currently carries a Zacks Rank #2 (Buy). Other companies that are currently performing well and warrant a look include Zacks Rank #1 (Strong Buy) stock WellPoint Inc. and Zacks Rank #2 (Buy) stock , Aetna Inc. (AET - Free Report) .