Centene Corporation

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Centene Corporation
TypePublic
NYSE: CNC
S&P 500 Component
IndustryManaged healthcare
Insurance
Founded1984
FounderElizabeth “Betty” Brinn
Headquarters
St. Louis, MO
,
U.S.
Key people
  • Michael F. Neidorff (Chairman and CEO)
  • Cynthia J. Brinkley (President and COO)
ProductsHealthcare services
Health insurance
Revenue Increase US$111.115 billion (2020)[1]
Increase US$3.082 billion (2020)[1]
Increase US$1.808 billion (2020)[1]
Total assetsIncrease US$68.719 billion (2020)[1]
Total equityIncrease US$25.885 billion (2020)[1]
Number of employees
Increase ~71,300 (December 2020)[1]
Websitewww.centene.com Edit this at Wikidata

Centene Corporation is a publicly traded and managed care company based in St. Louis, Missouri. It serves as an intermediary for government-sponsored and privately insured health care programs. Centene has been ranked on the Fortune 500 list of the largest United States corporations by total revenue, including being ranked No. 24 on the 2021 list.[2]

History[]

Centene was founded by Elizabeth Brinn as Managed Health Services, a nonprofit Medicaid plan in Milwaukee, Wisconsin in 1984.[3] In 1996, Michael F. Neidorff joined the company as chief executive.[4]

Centene went public in December 2001.[5] In 2006, Centene acquired US Scripte, a pharmacy benefits manager.[6] The company later merged US Script with subsidiaries to form its Envolve divisions.[6] In 2011, Centene formed Centurion, a provider of correctional health care services, as a joint venture with MHM Services.[6] In 2018, Centene acquired MHM Services, including its stake in Centurion.[6]

Centene began offering health insurance plans through Affordable Care Act exchanges in 2014.[7] Centene offers state-run Medicaid programs.[8]

On July 2, 2015, Centene announced it would acquire Health Net.[9][10][11] In March 2016, Centene finalized its acquisition of Health Net.[12]

On September 12, 2017, Centene Corp. announced that it would acquire Fidelis Care, a nonprofit insurer in New York, for US $3.75 billion.[13]

In March 2019, Centene announced plans to acquire WellCare for US $17.3 billion.[14][15]

On January 4, 2021, it was announced that Centene would acquire Magellan Health for $2.2 billion.[16]

In the United Kingdom, Centene began to acquire local healthcare services in 2017.[17] In 2019, Centene, through its subsidiary MH Services, took a 40% stake in Circle Health,[17] as part of a deal which created a national network of over 50 private hospitals.[18] In early 2021, Operose Health, a UK subsidiary of Centene, took over a group of London practices, AT Medics.[19]

Business segments[]

The main lines of Centene include:

Controversies[]

In 2014, Fox News alleged that Superior HealthPlan of Texas denied coverage of an infant's surgery for brain cancer at Texas Children's Hospital. Superior HealthPlan is a joint-venture of Centene and Community Health Centers Health Centers Network LP, which provides services for Medicaid recipients.[25] The article reported that Superior HealthPlan had previously paid healthcare claims for the infant at the hospital, although Superior HealthPlan stated that it did not cover procedures at the facility.[26] Three days after the article was published, Superior HealthPlan reversed its decision and covered the surgery.[27]

In 2018, a class action lawsuit was filed against Centene Corp. alleging its Ambetter marketplace healthcare plans had misled customers with physician coverage networks that were narrower than advertised.[28][29]

In June 2021, an article in the Ohio Capital Journal reported that CEO Michael Neidorff was the highest paid healthcare executive in the United States, earning nearly $25 million annually.[30][31]

See also[]

References[]

  1. ^ a b c d e f "Centene Corporation 2020 Annual Report (Form 10-K)". sec.gov. U.S. Securities and Exchange Commission. February 2021.
  2. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 10, 2018.
  3. ^ Trewyn, Phill (February 17, 2002). "Managed Health's new parent plots Medicaid growth". www.bizjournals.com. Retrieved September 9, 2021.
  4. ^ "Health services: Michael Neidorff, Centene Corp". St. Louis Business Journal. June 16, 2002.
  5. ^ "Centene launches IPO at $14 per share". www.bizjournals.com. December 13, 2001. Retrieved September 9, 2021.
  6. ^ a b c d Japsen, Bruce. "Centene Invests Stake In Pharmacy Benefit Manager RxAdvance". Forbes. Retrieved September 9, 2021.
  7. ^ "Centene's Neidorff: WellCare acquisition has cleared final state approvals". FierceHealthcare. Retrieved September 9, 2021.
  8. ^ Liss, Samantha. "Centene becomes biggest Medicaid provider after 'banner' year". STLtoday.com. Retrieved September 9, 2021.
  9. ^ "Corporation - Home". Centene.com.
  10. ^ "Centene to Combine with Health Net in Transaction Valued at Approximately $6.8 Billion" (PDF). July 4, 2015. Archived from the original (PDF) on July 4, 2015.
  11. ^ "Centene completes Health Net deal after protracted review". Modernhealthcare.com.
  12. ^ Bray, Chad (July 2, 2015). "Centene to Acquire Its Managed Care Rival Health Net for $6.8 Billion". The New York Times. ISSN 0362-4331. Retrieved September 9, 2021.
  13. ^ Mathews, Anna Wilde; Armental, Maria (September 12, 2017). "Centene Agrees to Buy Fidelis Care in $3.75 Billion Deal". The Wall Street Journal. New York City, United States. Retrieved September 13, 2017.
  14. ^ Tobin, Ben. "Centene to buy smaller rival WellCare Health Plans in deal worth $17.3 billion". USA TODAY. Retrieved September 9, 2021.
  15. ^ Ward, Brendan (January 23, 2020). "Centene completes $17B acquisition of Tampa's WellCare". www.bizjournals.com. Retrieved September 9, 2021.
  16. ^ "Centene acquires Phoenix-based Magellan Health". Retrieved January 4, 2021.
  17. ^ a b "US company in takeover of network of GP practices". The Lowdown. February 4, 2021. Retrieved April 11, 2021.
  18. ^ Plimmer, Gill (November 29, 2019). "Takeover of BMI Healthcare by hedge fund-backed Circle Health is part of expansion push". Financial Times. Retrieved December 2, 2019.
  19. ^ Kollewe, Julia (February 26, 2021). "NHS GP practice operator with 500,000 patients passes into hands of US health insurer". The Guardian.
  20. ^ "Centene slapped with lawsuit over provider networks in ACA exchange plans". FierceHealthcare. Retrieved June 22, 2019.
  21. ^ "Centene completes Fidelis Care buy". Healthcare Dive. Retrieved September 9, 2021.
  22. ^ "How the WellCare acquisition is driving Centene's approach to Medicare Advantage". FierceHealthcare. Retrieved September 9, 2021.
  23. ^ "DOD Releases Draft RFP for New $58 Billion Health Care Contracts". Bloomberg Government. Retrieved September 9, 2021.
  24. ^ Japsen, Bruce. "Centene Acquisition Bolsters Its Prison Healthcare Business". Forbes. Retrieved September 9, 2021.
  25. ^ "Superior HealthPlan names CEO". www.bizjournals.com. March 20, 2002. Retrieved September 9, 2021.
  26. ^ Corbin, Cristina (March 24, 2015). "Parents fight insurance company to keep baby's cancer surgery docs". Fox News. Retrieved September 9, 2021.
  27. ^ Corbin, Cristina (July 12, 2014). "Texas baby improves after brain surgery allowed by insurer's change of heart". Foxnews.com.
  28. ^ Bryant, Meg (January 12, 2018). "Lawsuit accuses Centene of misleading customers on narrow ACA plans". Healthcare Dive. Retrieved April 26, 2019.
  29. ^ Tracer, Zachary (January 11, 2018). "Centene's Narrow Approach to Obamacare Plans Targeted by Lawsuit". Bloomberg. Retrieved April 26, 2019.
  30. ^ Schladen, Marty; June 28, Ohio Capital Journal; 2021 (June 28, 2021). "Lavishly paid and unapologetic. Company at center of Medicaid scandal focuses on profits". Ohio Capital Journal. Retrieved June 28, 2021.CS1 maint: numeric names: authors list (link)
  31. ^ "18 highest-paid CEOs in healthcare". www.beckershospitalreview.com. Retrieved June 28, 2021.

External links[]

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