Humana Expands RightSource Business - Analyst Blog
19 September 2011 - 9:30PM
Zacks
On Friday, Humana Inc. (HUM) announced the
expansion of its RightSource mail and specialty drug business by
hiring 200 new employees at a new office complex in Ohio by spring
2012. Besides, the company will also shift 450 existing employees
of RightSource to the new location by December 2012.
Humana has already leased a 175,000 square-foot space at an
office complex in Springdale, Ohio, which will be the company’s
third office in Greater Cincinnati. The company had started its
operations in Ohio in 2008 and currently has its regional
headquarters and a distribution center in the state.
The new additions will take Humana’s total headcount in Greater
Cincinnati to 1,800, including 1,200 RightSource employees.
RightSource operates in 50 states and caters to about 800,000
Humana Medicare and commercial health plan members.
The expansion is taking place to manage the growing operations
of RightSource’s mail order delivery service. The demand for the
service is growing at a fast pace due to Humana’s growing Medicare
business and the ease of home delivery.
Humana has been rapidly increasing its employee base. Last week
the company announced its plans of adding 200 new full-time
employees at the National Medicare service center in Louisville,
taking the head count in Louisville to 10,800 by 2011-end.
Additionally, in August 2011, the company had announced its plan to
hire 300 new employees in its Humana Cares division and in July
2011, it had announced its plan to hire 200 full-time employees at
its national Medicare service operations center in Tampa Bay.
We believe that the recognition of RightSource’s services and
Humana’s Medicare plans will lead to continued increase in demand,
thereby increasing Humana’s market share against rivals like
CIGNA Corporation (CI), Aetna
Inc. (AET) and UnitedHealth Group Inc.
(UNH). Thus, we can expect more expansions and job creations by the
company in future.
Currently, Humana carries a Zacks #1 Rank, which translates into
a Strong Buy rating for the short-term.
On Friday, the shares of Humana closed at $79.40, up 1.46%, on
the New York Stock Exchange.
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