Centene Corporation Receives Termination Notice Relating to New Jersey Transaction; No Effect on South Carolina Transaction
December 31 2008 - 8:00AM
Business Wire
Centene Corporation (NYSE: CNC) today announced that it has
received a termination notice from AMERIGROUP Corporation relating
to the previously disclosed agreement to sell certain assets of
University Health Plans, Inc. in the State of New Jersey. Centene
does not believe that there is cause to terminate the New Jersey
transaction and is prepared to pursue all available means to bring
the transaction to closure. The termination notice for New Jersey
does not relate to or reference the previously disclosed agreement
by Centene to purchase from AMERIGROUP certain assets in South
Carolina. Centene intends to close the South Carolina transaction
as contemplated in the first quarter of 2009. As discussed in
Centene�s earnings guidance release and conference call on December
19, 2008, the operations of University Health Plans, Inc. will be
classified as discontinued operations, effective with the fourth
quarter of 2008. As a result there is no impact on Centene�s 2009
earnings guidance. 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 the State Children�s Health Insurance Program
(SCHIP), as well as Aged, Blind, or Disabled (ABD), Foster
Care,�Long-Term Care�and Medicare (Special Needs Plans). The
Company operates local health plans and offers a range of
healthcare solutions for the rising number of uninsured Americans.
It contracts with other healthcare and commercial organizations to
provide specialty services including behavioral health, life and
health management, managed vision, nurse triage, pharmacy benefits
management and treatment compliance. Information regarding Centene
is available via the Internet at www.centene.com. 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.
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