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Healthways Announces Reorganization, Management Changes


Leading provider of fitness and health improvement programs, Healthways Inc. HWAY announced structural reorganization that will allow it to focus more effectively on growth and improvement of financial performance. Per the new organizational structure, emphasis would be on acquiring new members and retaining existing members in its three business networks — SilverSneakers, Prime Fitness and Physical Medicine.

Also along with the reorganization the following changes were made at the top level. Steve Janicak has been named Chief Growth Officer. His focus would be on adding and retaining members in the three networks mentioned above. Paul Edmisten has been named Chief Information Officer. Paul will be responsible for all aspects of information technology, data management and business intelligence strategy. Janet Calhoun has been nominated as the Chief Experience Officer on an interim basis. Finally, Joy Powell has been appointed as Executive Advisor to the CEO. In this role, Powell will focus on further development of partnership opportunities within Healthways’ current client base.

We view this reorganization positively as it is part of the company’s strategy to better align its core business operations. Going ahead, the company has plans to focus exclusively on three business units, namely SilverSneakers, Prime and Physical Medicine. The Medicare Advantage Plan is also expected to perform well under the Medicare star rating system.



We also note that Healthways’ unique scalable business, increasing adoption of programs like SilverSneakers, acute to post-acute Care Transitions Solution, the Dr. Ornish's Program, partnerships and a significant reduction in leverage ratio are its key positives.

Additionally, joint ventures and partnerships with the likes of Gallup, Blue Jones LLC and Dr. Dean Ornish have been the company’s key growth catalysts over the years.

Zacks Rank & Key Picks

Currently, Healthways carries a Zacks Rank #3 (Hold). Better-ranked stocks in the medical sector include GW Pharmaceuticals plc GWPH, NuVasive, Inc. NUVA and Baxter International Inc. BAX. Each of these stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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