New Business Pulls Healthways Out of Cigna Slump

Bouncing back from losing its biggest client, Franklin-based Healthways says it ended 2012 in the black. The company, which develops wellness programs, spent the year looking for new business.

Insurance giant Cigna ended its contract with Healthways in 2011, and it hard. The company laid off 200 employees. Its stock price tumbled by more than 40 percent. In the year since, it has signed agreements with Family Dollar, BlueCross BlueShield in Alabama and Arkansas, and the health plan for Tennessee state employees.

Ben Leedle is Healthways’ CEO.

“We have a very active pipeline. We don’t see any lightening of the demand from large employers, knowing there are performance issues closely linked and related to people’s status of well-being.”

The company’s efforts were enough to make up for the Cigna loss and end the year with a modest profit of around $8 million.

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