Health Net, Banner Health Network Extend with New Deal - Analyst Blog

After Humana Inc. (HUM), it is health maintenance organization (HMO) giant Health Net Inc. (HNT)'s subsidiary – Health Net of Arizona, Inc. – that has signed an agreement with Banner Health Network to enhance health care for its Medicare Advantage (MA) members.

Health Net MA beneficiaries will be able to access Banner Health Network's health system that will deliver high quality and coordinated patient care in the Maricopa and Pinal counties. Services that the beneficiaries will be able to avail are preventive screenings and wellness visits, hospital care, rehabilitation and skilled nursing services. Primary care and specialist providers under the Banner Health Network will utilize secure communication tools to provide enhanced quality care to the beneficiaries.

Additional benefits include the Banner iCare program for individuals who fall seriously ill, and face difficulty in getting regular medical appointments. These individuals will also be able to avail a 24-hour medical support through a user friendly technology installed in their homes. Moreover, individuals with chronic illness or new diagnosis will be provided educational classes and a nurse case manager to help them deal better with healthcare requirements.

Apart from enhancing health care for Health Net's MA members, the latest agreement strengthens the existing relationship of Health Net with Banner Health Network. The relentless focus on providing enhanced health care is expected to draw in more number of members for Health Net, thereby making way for more revenue generation. Last week, Humana had signed a similar deal with Banner Health Network to enhance patient care for its MA members in the Weld and Larimer counties.

Health Net currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the HMO space include Centene Corp. (CNC) and Anthem, Inc. (ANTM). While Centene sports a Zacks Rank #1 (Strong Buy), Anthem has a Zacks Rank #2 (Buy).