Magellan (MGLN) Unit Ties Up to Offer Solution for Older Adults
Magellan's (MGLN) unit - Magellan Healthcare - joins forces with DUOS to offer a digital solution for easing the independent living of older adults at homes.
Magellan Health, Inc.’s MGLN behavioral health unit, Magellan Healthcare, recently collaborated with the digital health company DUOS to offer a program for easing independent living for older adults.
Following the tie-up, a Duo, a trained personal assistant for aging, will coordinate with Magellan’s members, which will help address behavioral health needs and other serious health-related concerns. Apart from looking after medical issues, the digital solution will act as a companion for older adults and aid them in performing several daily chores. The presence of a companion will not only relieve older adults from the agony of social isolation but also result in better health outcomes.
The holistic approach of Duo will help members to age gracefully within the comfort of their homes and also reduce the need of frequent hospital visits. Initiatives similar to the latest one also help release the mounting pressure on caregivers to cater to the elderly population.
The collaboration with DUOS has started yielding results for Magellan. Of late, Magellan Behavioral Health of Pennsylvania introduced a pilot in Northampton County. The County members were subsequently linked to DUOS. It is worth mentioning that members who have enrolled in the program and placed support services requests attained a success rate of 97%.
Magellan follows an integrated approach of catering to the behavioral, physical and pharmacy needs of people. MGLN partners with well-established healthcare providers for bolstering its behavioral healthcare services portfolio and nationwide presence. The recent partnership is a testament to the whole-person approach followed by the healthcare provider for upgrading the healthcare experience of members. DUOS seems to be the apt partner for complementing the company’s endeavor since the former works in unison with members and healthcare experts to deliver holistic and personalized assistance.
The latest tie-up seems to be a time opportune move as well, considering the increasing aging population in the United States grappling with several social determinants of health (“SDOH”) headwinds including food insecurity and housing instability. Concurrently, the rising incidence of behavioral health issues nationwide is a cause of concern. This clearly indicates solid demand for behavioral healthcare services, which gives Magellan the perfect opportunity to capitalize on.
Magellan has been pursuing partnerships for providing high-tech solutions to its members and the latest tie-up reflects one such initiative. In October 2021, the Magellan Healthcare unit teamed up with Neuroflow to unveil a collaborative care management solution in a bid to ease the behavioral health treatment process. Collaborations with Livongo and Neuromotion are also part of MGLN’s efforts to extend advanced solutions or platforms to its members.
The credibility of Magellan’s behavioral health capabilities can be substantiated by the fact that the healthcare provider Centene, which has been one of its long-time customers, selected the company for constructing one of the leading U.S. behavioral health platforms. To this end, CNC inked a merger deal with Magellan in the beginning of 2021, with the transaction estimated to close in the fourth quarter of this year. Per Centene’s management, the acquisition of Magellan is anticipated to add scale across CNC’s specialty care business.
Apart from Magellan, healthcare providers like HCA Healthcare, Inc. HCA, Acadia Healthcare Company, Inc. ACHC and Universal Health Services, Inc. UHS offer high-quality behavioral healthcare services and are poised to capitalize on robust demand for these services.
HCA Healthcare operates as one of the leading U.S. acute care psychiatric providers. Behavioral healthcare services remain one of the fastest-growing business lines within HCA. Additionally, HCA Healthcare continues to collaborate with hospital affiliates for better management of behavioral healthcare services.
Acadia Healthcare is a pure-play behavioral healthcare services provider in the United States. To meet the growing demand for behavioral healthcare services, ACHC has been undertaking acquisitions or joint ventures for developing new facilities or increasing beds in existing facilities. As of Sep 30, 2021, Acadia Healthcare operated 230 behavioral healthcare facilities across 40 states and Puerto Rico.
Backed by clinical resources and geographic presence, Universal Health Services enters into mutually beneficial collaborations with other healthcare systems. This has helped UHS in delivering enhanced and affordable behavioral healthcare services, thus resulting in better outcomes for patients. As of Sep 30, 2021, Universal Health Services operated 333 inpatient behavioral health care facilities and 15 outpatient behavioral health care facilities throughout the United States, the U.K. and Puerto Rico.
Shares of Magellan have gained 18.7% in a year compared with the industry’s growth of 41.3%.
Image Source: Zacks Investment Research
MGLN presently has a Zacks Rank #4 (Sell).
While shares of HCA Healthcare and Acadia Healthcare have gained 50.6%, 16.2% and 40.7%, respectively, in a year, Universal Health Services stock has lost 8.2% in the same time frame.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Universal Health Services, Inc. (UHS): Free Stock Analysis Report
HCA Healthcare, Inc. (HCA): Free Stock Analysis Report
Magellan Health, Inc. (MGLN): Free Stock Analysis Report
Acadia Healthcare Company, Inc. (ACHC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research