ST. LOUIS, Aug. 10 /PRNewswire-FirstCall/ -- Centene
Corporation (NYSE: CNC) today announced that its Florida subsidiary, Sunshine State Health Plan
(Sunshine State), has signed a
definitive agreement to acquire the Medicaid and Long-Term Care
Diversion assets of Citrus Health Care, Inc. (Citrus), a managed healthcare services company
of PHC Holdings of Florida, Inc.
Citrus currently serves more than 52,000 non-reform Medicaid
members and nearly 2,000 Long-Term Care Diversion members,
primarily in the Tampa and
Orlando regions.
Consistent with Centene's goal of growing its market share, this
transaction significantly expands Sunshine
State's presence and membership in the non-reform Medicaid
market in Florida. In
addition, the acquisition of the Long-Term Care Diversion business
creates a new growth opportunity for Centene in the state.
The transaction is contingent upon receiving approval from
state regulators and is expected to close in the fourth quarter of
this year.
"The expansion of our Florida
operations is another example of executing on our strategy of
growing current market businesses to better meet the needs of our
state partners and their members," said Centene Chairman and Chief
Executive Officer Michael Neidorff.
"By leveraging our capabilities across a broader member base
as well as entering a new product line, this transaction will
enable us to provide better services to our customers at a lower
cost."
The acquisition of Citrus'
Medicaid and Long-Term Care Diversion business lines is expected to
add revenues in the range of $120-130
million on an annual basis. Including transaction
costs, the company expects the acquisition to be neutral to
earnings in 2010 and accretive to earnings by approximately
$0.08-0.10 per share on an annual
basis.
About Centene Corporation
Centene Corporation, a Fortune 500 company, 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
Copyright . 10 PR Newswire