Humana buys health care analytics company Anvita

The insurer announced the acquisition of a leading health data analytics provider.

By Zacks.com Dec 8, 2011 1:35PM

Humana(© Creatas/SuperStock)(HUM) announced the acquisition Wednesday of health care analytics company Anvita Health. The financial terms of the deal remain undisclosed.


Anvita, established in San Diego in 2000, analyzes vast amounts of health care data to provide information to help companies improve the quality of their services and reduce costs.


The acquisition is expected to strengthen Humana’s clinical management. It will be additionally beneficial for the company as Humana has already been using the services of Anvita since 2010.


Humana uses the Anvita Insight engine to spot gaps in members' care and identify concerns regarding safety of drugs. The company then sends automated messages to members, service associates and health-care providers to ensure timely relay of the information. The Anvita Insight engine uses more sources than other analysis engines to collect and analyze health-care data.


Following the acquisition, Anvita will not reserve its analytical services for Humana, rather it will continue serving other clients as a subsidiary of the group company. Nevertheless, the acquisition is not expected to significantly affect Humana’s earnings in 2011 or 2012.


Humana is the fifth-largest insurer on enrollment basis in the U.S. and competes with companies like WellPoint (WLP) and Aetna (AET). The company has been rapidly expanding its business through acquisitions.


In November 2011, Humana announced an agreement to acquire chronic-care provider SeniorBridge for an undisclosed amount. SeniorBridge is an 11-year old New York-based health-care provider that offers in-home care to seniors with chronic diseases such as Alzheimer’s, Parkinson’s and congestive heart failure.


Earlier, in September, Humana subsidiary Concentra acquired four urgent care medical centers from NextCare. In the same month, the company announced a deal to acquire MD Care, a privately held health-maintenance organization that operates in southern California.


Before that, in August 2011, Humana declared its intention to acquire California's Arcadian Management Services, a Medicare Advantage health-maintenance organization with members in 15 states. We expect the company to grow through these acquisitions, although risks related to integration remain a cause of concern.


Currently, the company carries a Zacks No. 2 Rank, implying a short-term buy rating, with a slight upward pressure on the shares.


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