Tivity Health Inc (NASDAQ:TVTY) has released a statement commenting on its relationship with UnitedHealth Group Inc (NYSE:UNH).
Tivity released the statement on November 7 in the morning, disclosing more details about its relationship with UnitedHealth. The company stated that it will roll out a new fitness benefit program in 2018. The program will be available in nine states for members that are subscribed to UnitedHealthcare Medicare Advantage. This is a step forward especially considering that the program was previously only accessible in two states. UnitedHealthcare will also continue to offer its SilverSneakers Fitness Program to Medicare Advantage members in all the states.
“We have an 18-year relationship with UnitedHealthcare offering our SilverSneakers Fitness Program to their Medicare Advantage members throughout the U.S,” stated Tivity’s Chief Executive Officer, Donato Tramuto.
Tramunto also stated that his company renewed its contract with UnitedHealth this year in April. The new contract will facilitate the provision of the SilverSneakers Fitness Program until 2020. The CEO also stated that each of the company’s healthcare plan clients are the ones that determine which state or county will receive the supplemental benefits from the company.
The CEO also pointed out that his firm values its relationship with UnitedHealthcare and that it expects the number of eligible members to get closer to 16 million in 2018. This demonstrates just how much the company is confident with its proprietary programing and the SilverSneakers brand.
Unfortunately, the announcement was not met so well by investors considering that the stock plummeted by a significant margin. The stock lost about 34 percent of its value thus ondoing some of the value gained in a previous surge. The company is hoping that the new program will help strengthen its relationship with UnitedHealth and allow their partnership to continue growing stronger. The fact that they have been working together for 18 years means they already have a strong relationship. Tivity’s current plans also align with the company’s financial guidance for 2018.
Tivity stock closed the latest trading session on Monday at $31.60 after tanking by 34.24 percent compared to the value of the stock during the previous close.