Healthways shares have raced downward today as the Center for Medicare and Medicaid Services informed the company that its pilot programs were failing to meet certain standards.
At midday, the stock was hovering around $55, down more than 17 percent on the day. Volume was very heavy.
The local disease manager was notified yesterday by the Centers for Medicare and Medicaid Services that a study of the Medicare Health Support pilot programs, which have plagued the company’s earnings at various points in the last year, were not meeting requirements. CMS went on to say that the program will end as scheduled this year, giving no indication whether it will expand.
Healthways is one of several companies participating in the program, with two MHS pilots in Maryland and the District of Columbia.
Many observers have been critical of the programs, which were started three years ago, claiming that the actual savings generated were unimpressive. Healthways has explained these small savings figures by pointing out that the pilot populations were “much older and sicker” than the company had previously expected.
The company’s stock posted tremendous gains in ’07 and had begun the New Year with gusto, climbing to near $70.
Healthcare |
Market movers |
Disease management |
Healthways Inc. |
Centers for Medicare and Medicaid Services (CMS)
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