Tenet Healthcare (THC) stretches multi-year contract with Cigna to provide its in-network access to the latter’s customers.
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Tenet Healthcare Corporation THC recently extended its relationship with Cigna Corporation CI through a new multi-year contract.With this new deal, Cigna’s customers will be able to leverage in-network access to Tenet’s hospitals, outpatient centers and physician clinics through 2025. The contract is effective Jan 1, 2022.This will also include the ambulatory hubs run by United Surgical Partners International that are integrated into Tenet’s financial statements.In 2019, both companies signed a multi-year agreement where Cigna members covered under its commercial health plans were allowed uninterrupted in-network access to Tenet providers.The contract renewal took place four months before the expiration of the current one. Patients are expected to benefit from better health outcomes at affordable costs. Given the prevalent COVID-19 pandemic, people are seeking a seamless and enriched healthcare plus access to quality physicians from hospitals. This is the right time to forge and reinforce such relationships.The well-diversified healthcare services company made numerous purchases, partnerships and strategic alliances, aimed primarily at boosting the scale of its business, growing operating capacity and expanding its geographical presence. It constantly partnered with industry biggies like Blue Cross Blue Shield of Texas, Cigna, Aetna, UnitedHealth, Humana, et al. The healthcare provider also teamed up with several healthcare systems for bolstering its partner networks.The company closed its buyout of a portfolio of 45 ambulatory surgical centers from SurgCenter Development for a value of $1.1 billion in December 2020.All these initiatives poise this presently Zacks Rank #3 (Hold) company well for long-term growth.There has been a host of activities taking place in the space. For instance, Cigna inked a multi-year deal with Connecticut-based Hartford HealthCare, which will provide its customers with continued access to the broad-based network of hospitals, facilities and providers of the latter.Price PerformanceShares of the company have soared 152.9% in a year’s time, outperforming its industry’s growth of 77.7%.Image Source: Zacks Investment ResearchStocks to ConsiderSome better-ranked stocks in the medical space are Acadia Healthcare Company, Inc. ACHC and HCA Healthcare, Inc. HCA, each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Acadia Healthcare and HCA Healthcare have a trailing four-quarter earnings surprise of 26.14% and 11.65%, respectively, on average.
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