Centene Corp. (CNC) has agreed to acquire the Medicaid and
long-term-care operations of Citrus Health Care Inc., boosting its
presence in Florida.
Terms weren't disclosed, but the assets are expected to add up
to $130 million of annual revenue to Centene and increase its
bottom line by 10 cents a share.
Citrus, part of PHC Holdings of Florida Inc., has more than
52,000 Medicaid members and nearly 2,000 long-term clients,
primarily in the Tampa and Orlando areas.
While boosting its Medicaid rolls, Centene noted the
long-term-care business is a new one for the company in Florida. It
called the move "a new growth opportunity."
The deal, which needs approval from state regulators, is seen
closing in the fourth quarter.
Centene's primary business is Medicaid coverage, making up some
70% of its 1.6 million-person membership. The company had 113,100
members in its managed-care operations as of June 30, five times
the prior-year level.
It reported two weeks ago that second-quarter profit rose on
higher revenue and membership, with claims costs edging higher.
Shares closed Monday at $21.90 and were inactive premarket.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com