(HWAY) Healthways Teams with Windsor

Well-being enhancement company, Healthways Inc. (HWAY) plans to offer its SilverSneakers Fitness Program to members of Nashville-based Windsor Health Plan, a division of Windsor Health Group. Windsor Health Plan offers Medicare Advantage and Medicare Prescription Drug plans to improve the well-being of its elderly members.

Through the alliance, eligible members of the Windsor Medicare Advantage Health Maintenance Organization (HMO) plan residing in Virginia, Idaho, Mississippi, Tennessee, Montana, South Carolina and Arkansas will be able to access Healthway’s SilverSneakers Fitness Program. Additionally, the Windsor CompPlus HMO Special Needs Plan (SNP) members for Medicare/Medicaid dual-eligibles will receive extra benefits from the program.

The SilverSneakers Fitness Program encourages older people to exercise regularly in order to lower healthcare expenses and enhance well being. The highly acclaimed program promotes positive changes in behavior by meshing social encounters with its fitness regimen. It was founded in 1993 and caters to over 9 million eligible candidates across 15,000 fitness facilities.

The contract will help Healthways achieve its proposed outlook for 2013. The company expects revenues in the range of $710–$750 million (after accounting $80 million for the Cigna contract loss) for 2013. Moreover, it expects organic revenues for 2014 to exceed 2013 revenues by at least $85 million with incremental revenues from additional contracts.

The Healthways model encourages people to make favorable lifestyle changes that lead to enhanced well being, reduced healthcare costs, improved performance and economic value for customers. The company has invested in technology platforms that provide scalable support with large populations. It has tie-ups with a large proportion of U.S. health care plans and counts millions of lives in its customer base.

Healthways is the leader in a strategically critical and rapidly evolving part of the health care services market. Due to its unique scalable business model, the company shares may present a long-term investment opportunity, although it faces many challenges in the short term. One of the primary competitors of the company includes Express Scripts Holding Company (ESRX).

Currently, Healthways retains a Zacks Rank #3 (Hold), which supports its Neutral recommendation for the long-term.

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