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Humana (HUM) Brand to Open Senior-Centric Centers in Arizona

·4 min read

Humana Inc.’s HUM brand CenterWell Senior Primary Care recently unveiled plans to open nine senior-focused primary care centers by early 2023 in the Phoenix region of Arizona. The first site in Phoenix, CenterWell Maryvale, has commenced attending patients in the past few weeks. A grand inauguration for the same is set to take place on Aug 31, 2022.

Six other centers located in Groves, Sun City, Glendale, South Mountain and Peoria are slated to be launched by the end of 2022. Although details on the remaining three locations of Wildflower, Riverview and Alhambra in the Phoenix area will be unveiled later, the centers are likely to be inaugurated by early 2023.

Through these centers, the local seniors are likely to benefit from the personalized, care-team healthcare approach followed by CenterWell. The brand’s health hubs will comprise well-versed physicians, nurses and behavioral health specialists, clinical pharmacists and social workers to cater to the physical, social and emotional needs of the senior population. This, in turn, is likely to improve health outcomes, leading to comfortable living and longer life expectancy for the aging population.

The latest announcement also marks the first instance of CenterWell entering the Arizona market. The reason behind CenterWell’s intensified focus on serving the market is well understood as Phoenix is one of the rapidly-growing urban areas of the United States, with a significant greying population. This might offer CenterWell a perfect opportunity to serve the silver tsunami.

Opening successive CenterWell centers seems well-timed as the surging U.S. aging community rightfully demands access to quality and high-value care. Per Statista, the leading market and consumer data provider, around 16.9% of the American population was aged 65 years or above in 2020 and the percentage is anticipated to reach 22% by 2050.

Humana operates senior-centric primary care centers under the CenterWell Senior Primary Care and Conviva Care Centers brands through which it caters to nationwide Medicare members. Inauguration of CenterWell and Conviva centers across different U.S. regions is expected to lure more senior patients to enroll in Medicare plans and subsequently, avail of the diversified facilities of the centers. These growth-related efforts are likely to boost Humana’s Medicare business by expanding its membership base and bolstering its premiums.

Humana’s CenterWell and Conviva brands have a wide reach. The brands extend care to people in their twilight years by operating more than 215 centers spread across nine states.

HUM anticipates serving Medicare patients in roughly 250 CenterWell and Conviva clinics by 2022 end. The count of CenterWell centers is also likely to shoot up in the days ahead as plans are afoot to open 30-50 alike centers annually through 2025.

Shares of Humana have gained 14% in the past six months compared with the industry’s rally of 12.9%. HUM currently carries a Zacks Rank #2 (Buy).

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Other Stocks to Consider

Some other top-ranked stocks in the Medical space are Elevance Health Inc. ELV, AMN Healthcare Services, Inc. AMN and Acadia Healthcare Company, Inc. ACHC. While AMN Healthcare flaunts a Zacks Rank #1 (Strong Buy), Elevance Health and Acadia Healthcare carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Elevance Health’s earnings surpassed estimates in each of the last four quarters, the average being 4.33%. The Zacks Consensus Estimate for ELV’s 2022 earnings suggests an improvement of 10.9%, while the same for revenues indicates growth of 13% from the respective year-ago reported figures. The consensus mark for ELV’s 2022 earnings has moved 0.7% north in the past 60 days.

The bottom line of AMN Healthcare outpaced earnings in each of the trailing four quarters, the average surprise being 15.66%. The Zacks Consensus Estimate for AMN’s 2022 earnings suggests an improvement of 40.2% from the year-ago reported figure. The same for revenues implies 28.5% growth from the year-ago reported figure. The consensus mark for AMN’s 2022 earnings has moved 8.2% north in the past 30 days.

Acadia Healthcare’s earnings beat earnings estimates in two of the trailing four quarters, matched the mark once and missed the same in the remaining one, the average surprise being 3.49%. The Zacks Consensus Estimate for ACHC’s 2022 earnings suggests an improvement of 20.3%, while the same for revenues indicates growth of 12% from the respective year-ago reported figures. The consensus mark for ACHC’s 2022 earnings has moved 1% north in the past 30 days.

Shares of Elevance Health and Acadia Healthcare have gained 7.5% and 47.3%, respectively, in the past six months. However, the AMN Healthcare stock has dipped 0.7% in the same time frame.


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