So we finally got around to the meat of the annual report Healthways filed earlier this month with the Securities and Exchange Commission. One of the things we were looking for was color on the company adjusting to the pending loss of its big Cigna contract. Officials in December said they would lay off about 50 people due largely to that loss, but sources told us at the time the number was set to at least double.
Turns out Cigna isn't the only contract walking out the door: In their 10-K commentary, executives say Healthways' cost of services will rise this year because of the Cigna loss as well as "certain contract or program terminations with three smaller health plan customers, all of which carried a lower than average cost of services as a percentage of revenues." That got us thinking we should take a look at how the employee base at Healthways — once one of the booming darlings of Middle Tennessee's health care sector — has changed in recent years. Here's what we found.
October 2006 — 2,855
October 2007 — 3,800
October 2008 — 3,500
March 2010 — 3,000
March 2011 — 2,800
March 2012 — 2,400
Healthways said Thursday morning that Colorado's Rocky Mountain Health Plans has added five years to its contract with the Franklin-based wellness services company. Rocky Mountain Health has about 190,000 members and has contracted with Healthways since mid-2004. Its new deal adds on the local company's online behavior change portal.