Humana and Interwell Health Expand Value-Based Support to Florida
Humana Inc. HUM recently announced the expansion of its value-based care agreement to include eligible Medicare Advantage members in Florida. Humana and Interwell Health will provide value-based support services for eligible members suffering from chronic kidney disease (CKD) and end-stage kidney disease (ESKD). The services are available in 14 and 39 states for members with CKD and ESKD, respectively.
This move bodes well for Humana as it will enhance the quality of care and improve health outcomes for patients suffering from chronic kidney diseases. In a recently released issue brief, HUM highlighted that value-based care partnerships, specifically for kidney care, reduced unessential hospital discharges by 5% in 2023.
This is a time opportune move as tens of millions of Americans suffer from chronic kidney disease. HUM aims to continually expand and enhance its patient-friendly kidney care programs. This move is expected to aid in improving the retention of Medicare Advantage clients. Interwell Health’s resources will be available for access, incorporating 2,000 network nephrologists and renal care coordinators, amongst others.
This move highlights HUM’s focus on value-based care models. Its value-based care models will help in managing chronic conditions effectively. This, along with better patient outcomes, poises HUM to reduce overall healthcare costs and lower benefits.
Humana derives a major portion of its revenues from Medicare Advantage premiums. Its Medicare Advantage membership improved in the second quarter, benefiting its results. However, the benefits expense ratio deteriorated 270 bps, highlighting an increase in medical cost trends. HUM expects Medicare Advantage membership to grow 225,000 in 2024.
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HUM’s Price Performance
Shares of Humana have lost 13.5% in the past three months against the industry’s 13.9% growth.
Humana’s Zacks Rank and Stocks to Consider
HUM currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Medical space are Tenet Healthcare Corporation THC, HCA Healthcare, Inc. HCA and Integer Holdings Corporation ITGR. While Tenet Healthcare sports a Zacks Rank #1 (Strong Buy) at present, HCA Healthcare and Integer Holdings carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenet Healthcare’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 58.48%. The consensus estimate for THC’s 2024 earnings and revenues indicates an improvement of 53.6% and 1.4%, respectively, from the 2023 reported figures. The consensus estimate for Tenet Healthcare’s earnings has moved 5.6% north in the past 60 days.
HCA Healthcare’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 8.24%. The consensus estimate for HCA’s 2024 earnings and revenues implies an improvement of 18.2% and 8.9% from the respective 2023 figures. The consensus estimate for HCA Healthcare’s 2024 earnings has moved 1.2% north in the past 30 days.
Integer Holdings’ earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.83%. The consensus estimate for ITGR’s 2024 earnings and revenues indicates an improvement of 13.7% and 9.6%, respectively, from the 2023 figures. The consensus estimate for Integer Holdings’ 2024 earnings has moved 0.2% north in the past 60 days.
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