- Oops!Something went wrong.Please try again later.
To benefit its Medicare Advantage plan members across Virginia, Humana Inc. HUM 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
Some better-ranked stocks in the Medical space are Select Medical Holdings Corporation SEM, Assertio Holdings, Inc. ASRT and AMN Healthcare Services, Inc. AMN. While Assertio sports a Zacks Rank #1 (Strong Buy), Select Medical and AMN Healthcare carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Select Medical’s earnings surpassed estimates in each of the last four quarters, the average being 42.03%. The Zacks Consensus Estimate for SEM’s 2022 earnings has moved 1.4% north in the past 60 days. The expected long-term earnings growth rate for SEM is pegged at 15%, better than the industry’s average of 14.5%.
Assertio has a trailing four-quarter earnings surprise of 26.39%, on average. The Zacks Consensus Estimate for ASRT’s 2022 earnings is pegged at 40 cents. The year-ago reported figure was a loss of 3 cents per share. The Zacks Consensus Estimate for ASRT’s 2022 earnings has moved 8.1% north in the past 30 days.
The bottom line of AMN Healthcare outpaced estimates in each of the trailing four quarters, the average being 15.60%. The Zacks Consensus Estimate for AMN’s 2022 earnings indicates a rise of 30.3% from the year-ago actuals, while the same for revenues suggests an improvement of 25.9%. The consensus mark for AMN’s 2022 earnings has moved 3.3% north in the past 30 days.
Shares of Select Medical and AMN Healthcare have gained 32.7% and 1.2%, respectively, in the past three months. However, Assertio's stock has lost 1% in the same time frame.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Zacks Investment Research