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Humana Inc.’s HUM wholly-owned unit Conviva recently announced the acquisition of a primary care physician network comprising four organizations in South Florida in a bid to serve more seniors across the region. Shares of Humana have gained 0.6% in the last three days’ trading reflecting investor optimism.
As part of the latest move, the assets of four organizations namely Health Promoters Limited Liability Company; Jupiter Medical Group, Inc.; Primary Care Associates, Inc.; and Richard M. Hays, M.D., P.A. will be acquired by Conviva. The transaction is likely to contribute 12 centers and over 40 physicians, physician assistants and advanced practice registered nurses to Conviva’s existing network. Humana’s subsidiary will also bolster its network with the addition of 49 affiliate practices via downstream participation arrangements.
The recent move is in sync with Conviva’ efforts to offer enhanced healthcare services to seniors residing in the South Florida region, specifically, across the Treasure Coast region. The acquisition will bring the clinical team of the recently acquired network, which is renowned for delivering high-quality care to seniors, under Conviva’s radar. This, in turn, is likely to result in improved health outcomes and lower medical costs across the region that is in line with the value-based care approach followed by Conviva.
Time and again, Humana has undertaken initiatives for improving the health conditions of an aging U.S. population. The fact has been further substantiated by a report published by the Statista Research Department per which the percentage of people aged 65 or more have accounted for 16.5% of the total U.S. population in 2019 that is projected to reach 22% by 2050. The COVID-19 pandemic has accentuated the need for treating elder adults, who remain highly susceptible to the virus.
Notably, Humana owns a significant number of payer-agnostic senior-focused primary care centers, which is in line with its endeavor to treat the aging population. The latest move brings the count of such centers to over 170, among which Conviva, Partners in Primary Care and Family Physicians Group facilities are the notable ones. These centers have been ramping up expansion initiatives for penetrating every corner of the United States including the underserved regions that are grappling with dearth of primary care for seniors. These moves, in turn, strengthen the national footprint of Humana.
Shares of this Zacks Rank #3 (Hold) healthcare provider have gained 5.8% in a year compared with the industry’s growth of 7.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Furthermore, Humana remains well-positioned to gain from constant partnerships and extension of product offerings devised per needs of several communities it serves. The company has also encouraged increased use of telehealth services, which gained immense popularity amid the pandemic. The company’s recent tie-up with Mercy in February 2021 has enhanced virtual healthcare for patients.
Other healthcare providers, such as UnitedHealth Group Incorporated UNH, Teladoc Health, Inc. TDOC and Cigna Corporation CI, have also been actively developing their telehealth services.
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