ST. LOUIS, July 25, 2011 /PRNewswire/ -- Centene Corporation
(NYSE: CNC) announced today that Louisiana Healthcare Connections,
a subsidiary of Centene, has been selected to contract with the
Louisiana Department of Health and Hospitals to serve Medicaid
beneficiaries in Louisiana.
Louisiana Healthcare Connections is a joint venture between
Centene and the Louisiana Partnership for Choice and Access, an
organization comprised of 19 non-profit Louisiana Federally
Qualified Health Centers (FQHCs). Centene owns a 51% interest
in Louisiana Healthcare Connections, will be responsible for
management of the health plan operations and will deploy its
specialty company subsidiaries where applicable. The contract has a
three-year term with the potential for a two-year extension.
Approximately 875,000 beneficiaries will be eligible to be
served by coordinated care networks in the state's three Geographic
Services Areas (GSAs). Louisiana Healthcare Connections will
provide healthcare services to Medicaid enrollees in each of the
state's three GSAs. Services for these members are expected to
begin in the first quarter of 2012, with a three-phased membership
roll-out ending in the second quarter of 2012.
"We are honored to be selected to offer the citizens of
Louisiana coordinated healthcare
services and programs," said Jesse
Hunter, Executive Vice President of Corporate Development
and Operating Group Chairman of Centene. "Centene and our
partner FQHCs share a vision of providing accessible, high-quality
care for the medically underserved populations in Louisiana and we look forward to working
together to execute on that vision."
"This contract will mark Centene's entry into its 14th state,
and with it comes our continuing commitment to working side-by-side
with providers in delivering high-quality care that improves the
medical outcomes for our members in a cost-effective manner," said
Michael F. Neidorff, Chairman and
Chief Executive Officer of Centene.
Our preliminary estimates indicate that we will serve 160,000 to
180,000 members in Louisiana
generating annualized revenue of $330
million to $370 million. Updated financial guidance
including this award will be provided during Centene's 2011 second
quarter financial results conference call on July 26, 2011.
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, membership and revenue projections, timing
of regulatory contract approval, 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