ST. LOUIS, May 6 /PRNewswire-FirstCall/ -- Centene
Corporation (NYSE: CNC) today announced its subsidiary, Celtic
Group Inc. (Celtic), has signed a definitive agreement to acquire
NovaSys Health, L.L.C. (NovaSys), a leading third party
administrator (TPA) in Arkansas. NovaSys clients include
Arkansas State employees, public school
employees as well as ARHealthNetworks, a hybrid program of which
NovaSys is the sole vendor in the state. In addition to
traditional TPA services, NovaSys also offers its clients a
preferred provider organization (PPO) network of quality hospitals,
physicians and ancillary providers.
"Our involvement in the Arkansas Medicaid Expansion Program
and long-standing relationship with both the State and key
healthcare providers in the market make us a natural partner for
Centene and Celtic," said NovaSys Chief Executive John Ryan. "Our broad capabilities and
experience will allow us to help vertically integrate Celtic's
operations in claims processing, as well as strengthen our combined
capabilities as a platform for hybrid products, both in
Arkansas and other new
markets."
The acquisition of NovaSys expands Centene's national presence,
increasing to 11 the number of states that the company currently
operates in with the addition of Arkansas.
"The expansion of our Celtic operations and its capabilities is
consistent with our strategy of effectively deploying capital to
enhance our business," added Frederick
Manning, Celtic President and Chief Executive Officer.
"NovaSys brings both TPA and PPO network capabilities as well as a
talented management team that shares the Centene and
Celtic philosophy of providing better services at lower costs
to our customers."
The transaction is expected to close in the second quarter of
2010 and will be funded out of operating cash flow. Including
transaction costs, the Company expects the financial impact of the
acquisition will be immaterial in 2010 and accretive to earnings by
approximately $0.02 to $0.03 per
share on an annual basis.
About Centene Corporation
Centene Corporation is a leading multi-line healthcare
enterprise that provides programs and related services to the
rising number of under-insured and uninsured individuals. Many
receive benefits provided under Medicaid, including the State
Children's Health Insurance Program (CHIP), as well as Aged, Blind
or Disabled (ABD), Foster Care and
long-term care, in addition to other state-sponsored programs, and
Medicare (Special Needs Plans). Centene's CeltiCare subsidiary
offers states unique, "exchange-based" and other cost-effective
coverage solutions for low-income populations. The Company operates
local health plans and offers a range of health insurance
solutions. It also contracts with other healthcare and commercial
organizations to provide specialty services including behavioral
health, life and health management, managed vision, telehealth
services, and pharmacy benefits management. More information
regarding Centene is available 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.
SOURCE Centene Corporation