Cigna Corporation CI recently partnered with Huntsville Hospital Health System. Notably being the second largest healthcare facility in north Alabama, the hospital also acts as the regional referral and trauma center for several residents of the Tennessee Valley.
Enrollees of the company’s Medicare Advantage plans are likely to gain traction from this tie-up. Considering Cigna and Huntsville Hospital’s history of serving efficiently together, the new collaboration is anticipated to provide enhanced health outcomes on the back of new value-based care services in addition to the existing ones. Apart from solving health issues, this initiative is also likely to reduce medical costs for members.
Shares of this Zacks Rank #3 (Hold) healthcare provider have gained 20% in a year compared with the industry’s rise of 9.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cigna’s Efforts Bode Well
Notably, this is not the first time that Cigna is partnering with a healthcare system for boosting partner networks. The company has undertaken similar steps to serve several regions in the United States. Last month, it collaborated with MultiCare Health System based in Tacoma. In the same month, it tied up with Banner Health to offer improved healthcare facilities in the Arizona market. Cigna’s agreements with Parkview Health, Houston Methodist and Crozer-Keystone Health System are some other notable ones made this year. These initiatives not only highlight the company’s efforts to tap prevailing prospects across several regions but also help in strengthening presence across the United States.
Moreover, such efforts made by the company bode well at a time when the entire United States is grappling with the COVID-19 pandemic. Increased collaborations with several healthcare systems will somewhat help the company to provide enhanced healthcare services to customers in dire need of the same. Irrespective of COVID-19 and non-COVID-19 treatment, Cigna has been proactive by waiving certain “out-of-pocket” costs related to all primary care, specialty care and behavioral health care in-office and telehealth visits in the beginning of this month.
Furthermore, this healthcare provider has been making every effort to expand its digital services suite for containing the virus spread. Enhanced digital capabilities have enabled the homebound American populace to adopt telehealth services, with the help of which they can seek medical expertise virtually. This, in turn, has spurred demand for the telehealth market eventually. Per research reports by Arizton, the U.S. telehealth market is projected to witness a CAGR of 30% during the 2019-2025 period.
Among other stocks in the medical space, Teladoc Health Inc. TDOC, is a niche player in the telehealth service industry with wide offerings and international reach. Other companies, namely Magellan Health, Inc. MGLN and Humana Inc. HUM have also developed telehealth services.
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