Well-being enhancement company Healthways (HWAY) recently revealed that it is providing its Prime Fitness Program to First Coast Service Options located in Jacksonville, Florida and to Novitas Solutions based in Camp Hill, Pennsylvania. The two companies will provide access to Prime Fitness to their staff as a benefit paid for by the employer.

Periodic exercise helps manage health problems and leads to improved productivity and reduced systemic costs. Research results indicate that physical exercise three or more times a week (instead of zero to once a week) leads to a significant curtailment of healthcare costs.

Participants in Healthways Prime Fitness Program can avail of over 8,000 fitness centers across the country. Other benefits include access to an online site capable of designing fitness regimens. In addition, the company also provides telephonic support.

The Healthways model encourages people to make favorable lifestyle changes that lead to enhanced well-being, reduced healthcare costs, improved performance and economic value for customers. The company has invested in technology platforms that provide scalable support with large populations. It has tie-ups with a large proportion of U.S. health plans and counts many millions of lives in its customer base.

Due to its unique scalable business model, Healthways shares may present a long-term investment opportunity, although it may face many challenges in the short term.

Healthways is the leader in a strategically critical and rapidly evolving part of the health care services market. Its fitness program (SilverSneakers) for seniors is available at 14,000 centers across the U.S. and caters to several million eligible enrollees.

We currently have a Neutral recommendation on Healthways. The stock retains a Zacks #3 Rank, which translates into a short-term Hold rating.

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Healthways Acquires Users for Prime