Centene Corp Del Stock Price, News & Analysis

Centene Corporation (NYSE: CNC) announced its Medi-Cal Managed Care contract awards from the California Department of Health Care Services. The company will continue to serve nine counties but expressed disappointment over losing contracts in Los Angeles, Sacramento, and Kern counties. Centene has provided quality healthcare for 25 years through its local brand, Health Net, and believes the exit from these counties will disrupt services for members. The company is considering appeal options to protect its members' access to healthcare.

Centene Corporation's subsidiary, Magnolia Health Plan, has secured a four-year contract with the Mississippi Division of Medicaid to continue providing services for the state's Coordinated Care Organization Program. This program includes both the Mississippi Coordinated Access Network (MSCAN) and the Children's Health Insurance Program (CHIP). Magnolia currently serves over 150,000 Medicaid enrollees and has partnerships with nearly 31,000 healthcare providers in Mississippi.

Centene Corporation (NYSE: CNC) has filed a preliminary proxy statement with the SEC for a special stockholders meeting aimed at enhancing corporate governance. Key proposals include declassifying the Board for annual director elections and allowing stockholders holding at least 10% of shares to call special meetings. The Board’s Chairman, James Dallas, plans to step down after overseeing these amendments. The special meeting is expected to occur in late Q3 or early Q4 2022. Overall, the changes are intended to benefit shareholders and improve governance practices.

Health Net is responding to the state of emergency declared by Gov. Gavin Newsom in Siskiyou County due to ongoing wildfires. The company is providing special assistance to members, ensuring access to prescription medications and healthcare services to help them cope with stress and trauma. Members can obtain emergency supplies directly from their pharmacies or call Health Net for assistance. The company also offers 24/7 mental health support through MHN and telehealth services at no cost. This initiative underlines Health Net’s commitment to member welfare during crises.

In response to Governor Newsom's state of emergency in Mariposa County, Health Net is assisting its members affected by wildfires. The company is ensuring access to essential prescription medications and healthcare services to help members cope with stress or trauma. Members can obtain emergency supplies from their pharmacies, access telehealth services at no cost, and receive mental health support through MHN. Health Net is committed to providing necessary healthcare services during this crisis.

Centene Corporation (CNC) reported a diluted loss per share of $(0.29) for Q2 2022, influenced by a $1.45 billion real estate impairment charge. Adjusted diluted EPS rose to $1.77, up from $1.25 in Q2 2021. Total revenues increased 16% year-over-year to $35.9 billion, driven by organic Medicaid and Medicare growth. The Health Benefits Ratio improved to 86.7%. Centene raised its full-year adjusted EPS guidance to $5.60-$5.75, marking a cumulative increase of $0.20 since April. Strategic divestitures and real estate optimization are central to its Value Creation Plan.

Centene Corporation (NYSE: CNC) has signed a definitive agreement to sell its Spanish and Central European businesses to Vivalto Santé, as part of its strategic portfolio review. This transaction includes Ribera Salud, a healthcare provider in Spain, and Pro Diagnostics Group, which operates clinics in Slovakia and the Czech Republic. Centene plans to use most of the net proceeds for stock repurchases and the remainder to reduce debt. The transaction is expected to be neutral to adjusted diluted earnings per share over the 12 months following its closing, anticipated by year-end 2022.

Health Net has awarded a $120,000 grant to the Vouchers 4 Veggies program to help combat food insecurity in San Joaquin, Sutter, and Yuba counties. This initiative aims to provide low-income families with access to fresh produce. Since November 2021, over 250 households have benefited from food vouchers. This grant is part of Health Net's broader effort to enhance community health and tackle food insecurity affecting millions in California.

Centene Corporation (NYSE: CNC) has completed the divestiture of its pharmacy business, PANTHERx, to Vistria Group, General Atlantic, and Nautic Partners as part of its ongoing value creation strategy.

Proceeds from the sale will primarily be used for stock repurchases and debt reduction. The divestiture allows Centene to concentrate on its core business, enhancing its focus on delivering integrated, high-quality healthcare services.