Healthways Inc. is saying goodbye to CIGNA Corp. but expecting to say hello to many new health plan clients.
Executives from Healthways, Nashville, Tenn. (Nasdaq:HWAY), the parent of the SilverSneakers wellness and exercise program and other wellness and condition management programs, talked about the changes Monday during the company’s third-quarter earnings call.
Healthways is reporting $9.5 million in net income for the latest quarter on $176 million in revenue, compared with $11 million in net income on $170 million in revenue for the third quarter of 2010.
CIGNA, Bloomfield, Conn. (NYSE:CI), a major Healthways wellness program client, recently announced that it will be running its own wellness programs and winding down the Healthways contract starting Jan. 1, 2012.
What Your Peers Are Reading
Healthways President Ben Leedle Jr. said during the earnings call that he believes the CIGNA departure is the result of a strategic decision that has nothing to do with Healthways’ performance or prospects for future sales.
During the third quarter, Healthways won many new contracts without going through any bidding process, and request for proposal (RFP) activity was up 60%, Leedle said.