Centene Corporation Announces Investment in Florida Medicaid Managed Care Company
July 20 2007 - 1:53PM
Business Wire
Centene Corporation (NYSE: CNC) today announced that it has
acquired a minority ownership interest in Access Health Solutions,
LLC (Access) based in Sunrise, Florida. Under the terms of the
transaction, Centene has an option to acquire the remaining
interest in Access at a future date. Centene believes this
transaction will lay the foundation for the partnership to deliver
high quality healthcare to members while providing an integrated
managed care solution tailored to the diverse needs of Medicaid
recipients throughout Florida. Access, currently the third largest
Medicaid managed care entity in Florida serving approximately
90,000 members, provides its services under two separate contracts
with the State, one as a Minority Physician Network and the other
as a Provider Service Network. Under these contracts, the company
does not accept full risk for healthcare expenses. Centene has
formed Sunshine State Health Plan (Sunshine Health), a wholly-owned
subsidiary, and has started the process to have Sunshine Health
licensed as a full-risk Medicaid managed care company. Upon receipt
of the required licensure, Sunshine Health and Access will
collaborate with the Florida Agency for Healthcare Administration
(AHCA) and the Access providers to transition the Access members to
Sunshine Health. Access possesses a management team of nationally
recognized physicians and community leaders with excellent track
records in managed care and successful experience in the Florida
Medicaid market. Michael F. Neidorff, Centene's Chairman and Chief
Executive Officer, stated, �Access is an established leader in the
Florida Medicaid market and we are very fortunate to be working
with well respected providers and community leaders such as Dr.
Nelson Adams and to align ourselves with an organization that
shares our vision for quality healthcare. We are privileged to have
Dr. Adams and his team join us to manage our Florida operations.
Sunshine Health is committed to build upon the local approach for
every market to ensure our healthcare delivery model is carried out
by the stakeholders of the communities we serve.� Dr. Nelson L.
Adams, Chairman of Access, stated, �We believe that the partnership
with Centene will provide Access Health Solutions with the
additional resources and expertise necessary to prepare our company
for future growth. Centene possesses similar values and objectives
as Access Health Solutions including increasing access to quality
healthcare, achieving improved health outcomes for beneficiaries,
and supporting local communities.� Regarding the partnership with
Access, Christopher D. Bowers, Centene�s Acting Head, Health Plan
Business Unit, stated, �We are very excited about this partnership
and what we ultimately view as an opportunity to bring our
inclusive Medicaid managed care solution to Florida. We look
forward to working with AHCA and the State of Florida to expand
their consumer-oriented Medicaid Reform program and demonstrating
our commitment to improve health and quality of life for Medicaid
recipients in Florida.� Including the start-up costs associated
with Sunshine Health, Centene expects this transaction to be
neutral to earnings in 2007. 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.
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