To benefit its Medicare Advantage plan members across Virginia,
Humana Inc. ( HUM Quick Quote HUM - Free Report) recently extended the value-based home care model of its subsidiary onehome to the state.
In Virginia, the integrated model will be initially launched in Richmond, Roanoke and Southern Virginia counties. It is expected to deliver home care services to HUM’s Medicare Advantage members across the entire state coupled with those residing in North Carolina within the coming months.
Shares of Humana lost 1.2% on Jun 10, replicating declines in the broader markets.
With this expansion, onehome will join forces with the local home care providers of Virginia and deliver enhanced in-home care services through a network of those local providers so that the above-mentioned members of Humana can avail the same easily from the comforts of their home.
The model generates a single point of accountability, which looks into the diversified requirements of patients, physicians, hospitals and health plans for home-based patient care and delivers an array of post-acute needs comprising infusion care, nursing, occupational therapy, physical therapy and durable medical equipment (DME) services. All these services aim to make the recovery process hassle-free for those recuperating at home.
The recent expansion of onehome’s home care model reinforces Humana’s continuous efforts to bolster its home care capabilities and subsequently, its Home Solutions business.
HUM’s purchase of onehome in 2021 helped creating a value-based model that works closely with the local home care providers and delivers enhanced home care services. The significant move of acquiring Kindred at Home (which is currently undergoing the process of rebranding to CenterWell Home Health) in the same year backed Humana to emerge as the largest U.S. provider of home care services.
The model’s widened reach to more than half a million people after penetrating the whole of Virginia and North Carolina is likely to lure more customers in the future. The benefactors can avail the affordable home care services for which they have to enroll in Humana’s Medicare Advantage plans.
Raising further hopes, HUM anticipates its value-based home care model to onboard half of its Medicare Advantage members within a span of five years. These positive expectations are likely to result in membership growth for HUM, which in turn, might bolster its top line.
Also, the latest model expansion initiatives seem a time-opportune one, considering the prevalence of solid demand for a home-based care model that provides cost-effective services.
An aging U.S. population further highlights the importance of offering them effective home care services, assuring to deliver improved health outcomes without the need to step out from one’s residence.
Thus, Humana on the back of robust home care capabilities remains equipped to capitalize on the sturdy prospects of the U.S. home healthcare services market. Per a Fortune Business Insights report, the market is anticipated to witness a 7.2% CAGR over the 2022-2029 forecast period.
Shares of Humana have gained 2.8% in the past three months against the
industry’s 0.3% decline. HUM presently carries a Zacks Rank #3 (Hold). Image Source: Zacks Investment Research Stocks to Consider
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