Centene plans to sell its US$2 billion overseas business
Centene’s small international business may be the next corporate division in the auction area.
The for-profit company announced in a statement that the health insurance company is “reviewing its non-core assets as part of its ongoing investment portfolio optimization process, including evaluating strategic options for its international business.” Press Releases Friday.
According to a slide provided to investors on Friday, most of the company’s US$32.4 billion in international revenue comes from its Circle Health subsidiary in the United Kingdom, which claims to be the country’s largest independent hospital operator with 50 Home facilities. Centene also operates healthcare facilities in Spain.
In the third quarter, Centene’s international membership increased by 27.2% to 763,500, which is only a small part of the company’s 26.5 million policyholders.
This insurance company has been selling like crazy recently. Last month, the insurance company sold a majority stake in home health service provider US Medical Management to private equity firms Rubicon Partners, Valtrius, Oak HC/FT and HLM Venture Partners.
Centene is also exiting the field of pharmacy welfare management and $229 million paid Transition from the use of RxAdvance automated drug pricing tools in the third quarter. The company reorganized its Envolve PBM in 2019, and after reports that it charged the state’s Medicaid department excessively for medicines, the company only acted as a third-party administrator. Centene has budgeted US$1.25 billion to resolve allegations of Medicaid fraud and has paid US$246.4 million to date. Arkansas, Illinois, Kansas, Mississippi and Ohio. And shareholders Sue Centene, Asking for information about how much senior management knew about their former PBM’s Medicaid activities.
In addition, newly joined activist investors Political capital management The company is being forced to change its leadership and update its operations to improve profitability.
Centene is led by long-time CEO Michael Neidorff, whose $25 million compensation package Make him the highest paid CEO in the health insurance industry.The company recently announced a series of leadership changes and Renamed From the office of the president to the office of the chairman and chief executive officer.
The Centene plan focuses on developing its core medical assistance, medical insurance and commercial operations. The company’s goal is to complete a $2.2 billion acquisition of behavioral health provider Magellan Health by the end of this year. The insurance company also plans to automate its call center and supplier participation operations, and evaluate its real estate footprint. By 2024, Centene intends to increase its adjusted net profit margin by 3.3%.