Centene Company CNC just lately unveiled that its Indiana subsidiary acquired a contract from the Indiana Division of Administration once more. The subsidiary — Managed Well being Companies (MHS) — at present serves greater than 330,000 members within the state and has an extended historical past of successfully catering to well being points within the area.
The brand new deal has a period of 4 years with an choice of two contract renewals of 1 12 months every.
The renewed settlement will proceed to learn members of Hoosier Care Join, which is a coordinated care program catering to members of Indiana Well being Protection Packages (IHCP) who’re aged 65 years and older or are affected by blindness or any incapacity.
These members, who will not be eligible for Medicare, will proceed to be served by the healthcare suppliers’ Medicaid managed care and care coordination providers. The renewed program is more likely to allow Centene in enhancing well being situations of the state additional by catering to the wants of this weak inhabitants.
The truth is, this contract achieve is predicted to strengthen the corporate’s presence in Indiana, the place it already boasts of a strong Medicaid enterprise.
Shares of this Zacks Rank #3 (Maintain) healthcare supplier have gained 35% in a 12 months in contrast with the business’s development of 25.9%.
Furthermore, Centene’s give attention to addressing the well being problems with a number of U.S. states by its subsidiaries has been instrumental in it profitable a number of contracts repeatedly. The truth is, it’s not solely the Indiana subsidiary that has acquired contract renewal but in addition the corporate’s Kentucky subsidiary has been chosen by the state of Kentucky this June for serving its Medicaid managed care program.
These contract beneficial properties throughout completely different areas may be touted as one of many main causes for a spike within the firm’s medical membership over the previous a number of quarters. That is evident from Centene’s managed care membership, which totaled 24.6 million as of Jun 30, 2020, up 64% 12 months over 12 months.
Different Initiatives Undertaken by Centene
Other than a number of contract beneficial properties and program enlargement throughout completely different areas, the corporate continues to learn from enterprise acquisitions and mergers. These initiatives are meant to bolster the corporate’s product choices, broaden its addressable markets and enhance its Medicaid membership, which in flip, has been driving revenues for the previous few years.
Living proof, Centene’s revenues improved 46% 12 months over 12 months within the first half of 2020 on the again of membership development in Medicaid and WellCare buyout, which was accomplished this 12 months in January.
It’s worth mentioning, Centene and Quartet Well being have expanded their present partnership final month, which was solid in June 2019. The collaboration is meant to assist members effortlessly entry the behavioral well being care they want. The transfer bodes properly within the mild of the continuing worldwide disaster, which has aggravated psychological sickness and behavioural points.
Furthermore, Centene has been proactively taking measures from March itself by eliminating sure prices associated to coronavirus therapy. Additionally, elevated adoption of telehealth providers place Centene properly for long-term development amid this disaster interval.
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