S&P: Healthways unaffected

Standard & Poor's said its rating and outlook on Healthways Inc. (BB/stable) are not currently affected by the company's weaker-than-expected results in the first year of the Medicare Health Support program.

The program pilot failed to demonstrate how the disease management company could provide a cost-saving benefit to a sample Medicare population, the agency said.

S&P noted that Healthways' credit metrics are strong for the rating category and, considering the very limited operating impact of the problem, it expects the company to continue to generate solid free cash flow to repay its debt quickly.

However, it is uncertain if company's core commercial business will suffer because of a spillover effect from the weak results of the pilot, the agency said.

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