Boston, MA 08/29/2014 (wallstreetpr) – Health Net, Inc. (NYSE:HNT)’s subsidiary Health Net Federal Services, LLC has received the full URAC disease management reaccreditation. The reaccreditation will be effective from October 1, 2014 to October 1, 2017. Health Net got the URA accreditation for the first time in October 2011.
URAC has got the responsibility to establish the quality standards for healthcare industry. The disease management standards are carefully drafted which requires the firm to follow quality health care practices for accreditation. All the health care organizations should follow the set standards so they can pass the rigorous evaluation of independent accrediting body.
The significance
Health Net, Inc. (NYSE:HNT) offers high-quality health care services and practices and, therefore, qualifies as a right candidate for URAC reaccreditation. It is into helping the military community for managing the chronic illnesses. The decline in the percentage of chronic illness reduces the probability of higher health care complications. Health Net considers quality healthcare as an important parameter, contributing in the overall welfare of the nation.
The performance
Health Net, Inc. (NYSE:HNT) performance is not only reflected by URAC reaccreditation, but also clearly reflects in its second quarter results. It posted the net earnings of 62 cents a share comparable to 52 cents per share a year ago. The net revenue rose 24.9% to around $3.4 billion year-over-year. The strong second quarter results and continuing with the health plans has prompted Health Net to reiterate its financial guidance. It expects the full year net income to come at $3.00 per share and operating net income to come at $2.22 per share.
Its alliance deal with Cognizant Technology Solutions Corp (NASDAQ:CTSH) once completed will result in savings of $150 to $200 million annually in the form of general, administrative and depreciation expenses by year 2017. Also, it has got the extended PC3 contract from the Department of Veterans Affairs which will drive its revenues in the coming time.
