Humana Inc. (HUM - Free Report) has decided to collaborate with Walgreens for providing better primary and other services to senior citizens via primary care clinics. Notably, Walgreens is a provider of trusted care, included in the Retail Pharmacy USA Division of Walgreens Boots Alliance (WBA - Free Report) . This alliance is part of the ongoing and shared commitment of both companies to the health and well-being of the Kansas City community.
The partnership forged between Humana, a leading health and well-being company and Walgreens, the provider of trusted pharmacy services and care would essentially create a senior-focused neighborhood approach to health, which would include primary care, pharmacy, in-person health plan support and additional services for Medicare beneficiaries. The companies are also interested in expanding this collaboration into other markets in the near future.
Partners in Primary Care, a wholly-owned subsidiary of Humana, would operate senior-focused primary care clinics (on a pilot basis) in two Walgreens stores in the Kansas City, Missouri area. Located most conveniently, the clinics are expected to open doors this fall with a spacious area of around 2,500 square feet and would complement Walgreens pharmacy services along with the four Partners in Primary Care centers, inaugurated last year in Kansas City.
The clinics cater to aged people participating in a few Medicare plans. Partners in Primary Care focus on offering care services beyond addressing just the acute and immediate health issues. Additionally, the unit caters to developing long-term relationships with patients suffering chronic conditions.
Humana currently provides health-related programming and resources to its more than 65,000 Medicare Advantage and Medicare stand-alone Part D Prescription Drug plan members in the region. While Walgreens supports more than 75,000 Medicare beneficiaries in the Kansas City community through above 50 neighborhood pharmacies and other points of care.
Humana expects its initiative with Walgreens to deliver a way simpler and better experience for people, which would in turn encourage them to take care of their health more seriously while being closely in touch with the doctors. This senior-focused care by the company is a continuation of its strategy to revolve around integrating care via clinical programs intersecting health with lifestyle. The humanitarian service also supports Humana’s multi-faceted approach to healthcare in general.
The win-win program has aided Walgreens to expand its pharmacy services and expertise plus drive the digital tools and other programs, aimed at helping the grey populace in the community. It is one of Walgreens’ efforts to make cost-effective healthcare accessible to patients, providing them with a value-for-money experience.
Shares of this Zacks Rank #2 (Buy) company have rallied 20.86% year to date, outperforming the industry’s growth of 12.87%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This deal charts out the obvious course of action for Walgreens as it braces itself well for handling the pressing competition from the likely entry of Amazon in the pharmacy business. Also, CVS Health Corp. (CVS - Free Report) is on track to acquire Aetna Inc. (AET - Free Report) , which should expand the combined entity’s scale and size in the industry.
These health-oriented pacts point to the blurring of the boundaries between two subsectors of the healthcare industry such as, the pharmacies and drug stores and health insurers. These alliances are a way forward for the companies, striving to emerge as comprehensive healthcare players and cost controllers.
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