Centene Corporation

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Centene Corporation
TypePublic
NYSECNC
S&P 500 Component
IndustryHealthcare
Founded1984
FounderElizabeth “Betty” Brinn
Headquarters,
Key people
ServicesManaged care
RevenueIncrease 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

Centene Corporation is a large publicly traded company and a multi-line managed care enterprise that serves as a major intermediary for both government-sponsored and privately insured health care programs. It is a healthcare insurer that focuses on managed care for uninsured, underinsured, and low-income individuals.[2] Centene is the second-largest publicly traded corporation based in the state of Missouri. It ranked No. 42 in the 2020 Fortune 500 list of the largest United States corporations by total revenue.[3]

Business segments[edit]

The main lines of Centene include:

Centene also contracts with other healthcare and commercial organizations to provide specialty services, including behavioral health care services, case management software, correctional insurance, in-home health services, life and health management, vision, pharmacy benefits management, and telehealth services.[8][9]

History[edit]

Founded as a single health plan by Elizabeth “Betty” Brinn in Milwaukee, Wisconsin in 1984, Centene has established itself as a national leader in healthcare services.[10] In 1996, Michael F. Neidorff joined the company as chief executive.[11]

Centene has grown to become a $60 billion member of the Fortune 500 trading on the New York Stock Exchange. With over 65,000 employees across the country, Centene operates health plans that serve 12.3 million members in 29 states and 2 international markets and offers health insurance to other healthcare and commercial organizations.[12][13]

On July 2, 2015, Centene announced it would acquire Health Net. At announcement, it was estimated Health Net shareholders would own 29% of the combined company. The merger was finalized in March 2016 and Health Net shareholders received 0.622 shares of Centene common stock and $28.25 in cash for each share at closing, making the total transaction value about $6 billion, including assumption of debt. After its acquisition of Health Net, Centene now provides healthcare to over 11 million people.[12][14][15]

Centene currently ranks #42 on the Fortune 500 & #127 on the Fortune Global 500 List."[16][17] On September 12, 2017, it was announced that Centene Corp. would acquire the nonprofit insurer Fidelis Care for US $3.75 billion.[18]

On March 27, 2019, Centene acquired WellCare for US $17 billion. As of 2020, Centene is the largest provider of government-sponsored health plans with roughly 22 million members.[19]

In April 2019, Centene announced a partnership with the Washington University School of Medicine designed to accelerate research into treatments for Alzheimer’s disease, breast cancer, diabetes and obesity. As part of the partnership, Centene will fund up to $100 million over 10 years in research at Washington University.[20][21]

On July 1, 2020, Centene announced a $1 billion investment in a 130-acre campus located in Charlotte’s University City area. The campus will serve as the company's East Coast headquarters as well as its main technology hub and will eventually employ over 6,000 people.[22][23]

On January 4, 2021, it was announced that Centene would acquire Magellan Health for $2.2 billion.[24]

The London group of National Health Service (England) (NHS) medical practices AT Medics was taken over by Operose Health, a UK subsidiary of Centene Corp, in early 2021, creating the largest private supplier of GP services in the UK, with 58 practices covering half a million patients. A coalition of doctors, campaigners and academics wrote to health secretary Matt Hancock requesting an investigation by the Care Quality Commission. Campaigners spoke of "privatisation of the NHS by stealth".[25]

Specialty companies[edit]

  • AcariaHealth
  • Ambetter
  • Celtic Insurance Company
  • Operose Health
  • Centurion
  • Envolve PeopleCare
    • Cenpatico
    • LiveHealthier
    • NurseWise
    • Nurtur
  • Foundation Care
  • Health Net
  • LifeShare
  • NovaSys Health
  • OptiCare Managed Vision
  • Ribera Salud
  • RxAdvance
  • Fidelis Care
  • Trillium Health Care
  • U.S Medical Management (USMM) Formerly: US Script (Presently Envolve Pharmacy Solutions)
  • WellCare
  • Western Sky Community Care

[26]

Programs and services[edit]

Centene's health plans provide education and outreach programs.[27][12]

Controversies[edit]

In a Fox News article dated July 9, 2014, Superior HealthPlan of Texas was alleged to have denied coverage of an infant's surgery for brain cancer at Texas Children's Hospital where it was alleged to have previously paid claims for the infant. Part of the source of the controversy lay in reports that that facility had a notably higher survival rate for such operations. Superior HealthPlan initially claimed that it did not cover Texas Children's Hospital and that it has directed the family to a different facility. Superior HealthPlan said it was "confident" the family would find capable in-network providers.

However, three days later, on July 12, 2014, Fox News reported that Superior HealthPlan had reversed its decision and had consented to cover the needed surgery at Texas Children's Hospital. In that follow-up article, it was reported that the surgery was successful.[28]

In 2018, a class action lawsuit was filed against Centene Corp. regarding their Ambetter marketplace healthcare plans, alleging that the company has misled customers with physician coverage networks that are narrower than advertised.[29][30]

See also[edit]

References[edit]

  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. ^ California State Antitrust and Unfair Competition Law. LexisNexis. 2019. ISBN 9781579118884.
  3. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  4. ^ "Centene slapped with lawsuit over provider networks in ACA exchange plans". FierceHealthcare. Retrieved 2019-06-22.
  5. ^ "Consumers Sue Centene Over Network Adequacy, Transparency | Health Affairs". www.healthaffairs.org. doi:10.1377/hblog20180115.627515/full/. Retrieved 2019-06-22.
  6. ^ "About Us - Centene". Centene.com.
  7. ^ "Centene Sponsors National Council Of La Raza Conference". Prnewswire.com.
  8. ^ "Corporation - Home". Archived from the original on 2014-06-26.
  9. ^ "CENTENE CORP (CNC:New York): Stock Quote & Company Profile - Businessweek". 3 September 2012. Archived from the original on 3 September 2012.
  10. ^ Live, Centene.com -. "Diversity & Inclusion - Centene". Centene. Archived from the original on 2018-06-22. Retrieved 2018-06-22.
  11. ^ "Health services: Michael Neidorff, Centene Corp". St. Louis Business Journal. 16 June 2002.
  12. ^ a b c "Corporation - Home". Centene.com.
  13. ^ Doyle, Jim. "Centene was top performer in 2013 among St. Louis area public companies". Stltoday.com.
  14. ^ "Centene to Combine with Health Net in Transaction Valued at Approximately $6.8 Billion" (PDF). 4 July 2015. Archived from the original (PDF) on 4 July 2015.
  15. ^ "Centene completes Health Net deal after protracted review". Modernhealthcare.com.
  16. ^ "Centene - Fortune 500". Fortune. Retrieved 2017-09-15.
  17. ^ "Centene - Fortune 100 Fastest Growing Companies". Fortune. Retrieved 2017-09-15.
  18. ^ 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.
  19. ^ "Centene, WellCare merger nears finish line". Modern Healthcare. 2020-01-22. Retrieved 2020-01-24.
  20. ^ Japsen, Bruce. "Centene Commits $100M To Personalized Medicine Research". Forbes. Retrieved 2019-08-26.
  21. ^ "Centene and Washington University partner to advance personalized medicine research". Washington University School of Medicine in St. Louis. 2019-04-08. Retrieved 2019-08-26.
  22. ^ Muccigrosso, Catherine; Chemtob, Danielle; Eanes, Zachery (1 July 2020). "Insurance giant to bring over 3,200 jobs to Charlotte, with up to $450M in incentives". The Charlotte Observer.
  23. ^ "Centene Corporation to bring over 3,000 jobs to Charlotte". wcnc.com. Retrieved 2020-07-14.
  24. ^ "Centene acquires Phoenix-based Magellan Health". Retrieved 2021-01-04.
  25. ^ Kollewe, Julia (26 February 2021). "NHS GP practice operator with 500,000 patients passes into hands of US health insurer". The Guardian.
  26. ^ "Corporation - Home". Archived from the original on 2014-08-10.
  27. ^ "- Centene Corporation Reports 2014 Second Quarter Results & Raises Guidance". Prnewswire.com.
  28. ^ Corbin, Cristina (12 July 2014). "Texas baby improves after brain surgery allowed by insurer's change of heart". Foxnews.com.
  29. ^ Bryant, Meg (January 12, 2018). "Lawsuit accuses Centene of misleading customers on narrow ACA plans". Healthcare Dive. Retrieved 26 April 2019.
  30. ^ Tracer, Zachary (January 11, 2018). "Centene's Narrow Approach to Obamacare Plans Targeted by Lawsuit". Bloomberg. Retrieved 26 April 2019.

External links[edit]