AET Aetna Inc. (delisted)

Yesterday, Aetna Inc. (AET) announced that it has entered into a three-year agreement with Shriners Hospitals for Children to expand the access of Aetna members in 16 states across the U.S. 

The contract, which will be effective from August 1, 2011, will enable Aetna to provide its members with covered services, at in-network rates, from across 20 Shriners Hospitals. Around 200 physicians at Shriners will expectedly participate in Aetna’s plan.

In the first half of 2011, Aetna has already signed a number of agreements with different hospitals. In February, the company inked a deal with OSS Orthopaedic Hospital, on a new three-year contract, to spread out the network access for Aetna members in York County. This agreement helps Aetna to provide its members with covered benefits, at in-network rates, from OSS Orthopaedic Hospital. Aetna also renegotiated its existing contracts with OSS Ambulatory Surgery Center and the 24-physician Orthopaedic and Spine Specialists physicians group.

Also earlier during February, Aetna and Piedmont Healthcare announced that they had reached an agreement on a new three-year contract. Under the agreement, Aetna members in the Atlanta area will continue to receive covered benefits, at in-network rates, from the four hospitals within Piedmont Healthcare (Piedmont Hospital, Piedmont Fayette Hospital, Piedmont Mountainside Hospital, and Piedmont Newnan Hospital) and the affiliated outpatient centers and services.

In January, Aetna announced a deal with Lehigh Valley Physician Hospital Inc., DBA Valley Preferred, on a new four-year contract, for Lehigh Valley Health Network (LVHN). The deal allows the Lehigh Valley Hospital facilities in Allentown and Bethlehem to continue providing covered benefits, at in-network rates, to Aetna members in the Lehigh Valley area.

Aetna’s Health care network has more than 5,300 hospitals, with more than 563,000 primary care doctors and specialists and more than 1 million healthcare professionals.

Aetna competes with other health insurers such as CIGNA Corp. (CI), WellPoint Inc. (WLP ) , and UnitedHealth Group Inc. (UNH). The stock of Aetna carries a Zacks Rank # 2, which translates into a Buy recommendation over the short term (1-3 months). However, over the longer term, we rate the shares Neutral.

 
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