Centene Corporation Notified of Possible Delay of Texas Foster Care Contract
June 19 2007 - 9:49AM
Business Wire
Centene Corporation (NYSE: CNC) today announced that its Texas
subsidiary, Superior HealthPlan Network (Superior), has been
informed by the Texas Health and Human Services Commission (HHSC)
of its intent to delay the Comprehensive Health Care for Children
in Foster Care program. The HHSC indicated that the program would
likely begin in 2008. This statewide program will provide managed
care services to participants in the Texas foster care program.
Michael F. Neidorff, Chairman and Chief Executive Officer of
Centene Corporation, stated, �Our subsidiary, Superior HealthPlan
Network, is pleased to partner with Texas on this important
initiative. We are anxious to get this program underway given our
continued focus on positively impacting the special health needs of
these children. By providing and coordinating healthcare services
for HHSC, we can offer a greater degree of accountability for the
health outcomes of these foster care children.� As of March 31,
2007 Superior Network served 77,396 recipients under the Texas
Children�s Health Insurance Plan and was set to begin managing care
under this new contract on October 1, 2007. Superior HealthPlan,
Inc., Superior Network�s sister plan in Texas currently serves
235,013 recipients under the Texas Medicaid and CHIP Program. J.
Per Brodin, Centene Senior Vice President and Chief Financial
Officer, stated, �If the state delays the implementation of this
program, we will not achieve the 3-4 cents of 2007 fourth quarter
earnings accretion previously expected. We are having discussions
with the state to determine when they will most realistically be
ready for implementation which will enable us to properly estimate
the impact this has on our start-up costs. The longer term benefit
of this program to the children and Centene is unchanged.� The
information provided in this press release contains forward-looking
statements that relate to future events and future financial
performance of Centene. Subsequent events and developments may
cause the Company's estimates to change. The Company disclaims any
obligation to update this forward-looking financial information in
the future. Readers are cautioned that matters subject to
forward-looking statements involve known and unknown risks and
uncertainties, including economic, regulatory, competitive and
other factors that may cause Centene's or its industry's actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by these
forward-looking statements. Actual results may differ from
projections or estimates due to a variety of important factors,
including Centene's ability to accurately predict and effectively
manage health benefits and other operating expenses, competition,
changes in healthcare practices, changes in federal or state laws
or regulations, inflation, provider contract changes, new
technologies, reduction in provider payments by governmental
payors, major epidemics, disasters and numerous other factors
affecting the delivery and cost of healthcare. The expiration,
cancellation or suspension of Centene's Medicaid managed care
contracts by state governments would also negatively affect
Centene. About Centene Corporation Centene Corporation is a leading
multi-line healthcare enterprise that provides programs and related
services to individuals receiving benefits under Medicaid,
including Supplemental Security Income (SSI) and the State
Children's Health Insurance Program (SCHIP). The Company operates
health plans in�Arizona., Georgia, Indiana, New Jersey, Ohio, Texas
and Wisconsin. In addition, the Company contracts with other
healthcare and commercial organizations to provide specialty
services including behavioral health, health management, long-term
care, managed vision, nurse triage, pharmacy benefit management and
treatment compliance. Information regarding Centene is available
via the Internet at www.centene.com. About SuperiorHealthPlan
Superior HealthPlan (Superior) is a health maintenance organization
that has been providing services in Texas since 1999. Superior is a
wholly-owned subsidiary of Centene Corporation, a leading
multi-line healthcare enterprise offering both core Medicaid and
specialty services. Information regarding Superior is available via
the Internet at www.superiorhealthplan.com.
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