Healthways hoping its health improves in quarter after acquisition

Healthways, one of Williamson County’s largest single employers, announced today that it will release its third quarter earnings report on Nov. 1.

The population health services provider, which made headlines in July when Georgia-based private-health company Sharecare purchased its brand and Total Population Health Services division, reported losses in each of the previous two 2016 quarters.

Each of its last four quarterly earnings reports showed net losses, staring with Q3 of 2015, which showed a loss of $9.03 million. Since its quarterly earning reports have shown losses of- 2015 Q4: $19.43 million; 2016 Q1: $14.21 million and 2016 Q2 $175.6 million.

The Q2 loss largely came from a reported $195.43 million loss from “extraordinary items and discontinued operations,” namely its Total Population Health Services division- which was classified as a loss because of the anticipated sale of it to Sharecare. Without it, Healthways actually would have posted a net profit for the first time in four quarters in Q2, of $19.86 million.

“We expect that the performance for our continuing operations over the next two quarters will be similar within a modest range to that of the first two quarters of 2016, with the exception of the costs to separate the businesses,” Alfred Lumsdaine, Healthways Chief Financial and Administrative Officer, said in a release. “The final transaction costs resulting from the sale will be reflected in our third quarter financial statements.”

Healthways, in selling its population health division to Sharecare, decided to change tack and re-organize around its healthy assets- and as such expects a brighter financial future.

“Our second-quarter operating results provide a much clearer picture of the strength of the Company’s Network Solutions business,” said CEO Donato Tramuto in a release. “Additionally, we have good visibility to consistent quarterly performance for the rest of this year and, as previously stated, we expect the Company’s financial profile by the end of 2016 to include annualized revenue greater than $500 million.”