SAN FRANCISCO (Thomson Financial) - Healthways Inc. said Monday there is no
change to its fiscal 2008 forecast following the government's decision to lower
the savings target for the Medicare Health Support Program to budget neutrality,
or savings greater than or equal to fees, from 5% net savings.
Healthways said it views the change, which was approved by the Office of
Management and Budget, as a "positive development," but that it isn't yet able
to assess the impact.
The Centers for Medicare and Medicaid Services hasn't yet identified how or
when the new savings target will be implemented, Healthways said.
"The company continues to believe that the design and implementation issues
that it has discussed regularly over the past year will likely complicate the
calculation of actual financial performance, notwithstanding a change in the
savings target," Healthways said in a regulatory filing.
Shares of Nashville, Tenn.-based Healthways rose 8.9% to $63.68.
Gabriel Madway
gm/jw
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