Healthways extends Cigna contract

Also: Study funded by CDC shows Healthways program to be effective cost cutter

Email | Print By Walker Duncan

Healthways announced this afternoon it has extended its agreement with insurance giant Cigna. With the new extension, the contract is now set to expire in 2013.

Through the agreement, the Franklin-based disease management firm (Ticker: HWAY) will continue to provide support for a variety of Cigna programs serving about 1.2 million members. In fiscal 2007, Healthways' work with Cigna accounted for 22 percent of $616 million in revenue.

News of this extension follows an announcement yesterday from the company touting the results of a study funded by the Centers for Disease Control & Prevention on the prevention of chronic disease. That research was carried out by Group Health and the University of Washington.

According to the study, participants in Healthways’ Silver Sneakers program were “admitted to the hospital less often and have lower overall healthcare costs.”

These positive news items come after a horrid stretch for Healthways, which has seen its market cap sliced in half since mid-January. Around 1:45 p.m., the shares up 4 percent on the day.