Navigation Links
Centene Corporation Acquires Majority Interest In U.S. Medical Management
Date:12/12/2013

ST. LOUIS, Dec. 12, 2013 /PRNewswire/ -- Centene Corporation (NYSE: CNC) announced today that it has signed a definitive agreement to purchase a majority interest in U.S. Medical Management, LLC.  U.S. Medical Management, LLC, along with its affiliated entities ("USMM"), is a leading management services organization and provider of in-home health services for high acuity populations.  Based in Troy, Michigan, USMM provides an integrated, physician-driven model which coordinates comprehensive care management for complex populations.  USMM provides a continuum of in-home services including primary care, health risk assessments, home health, hospice, podiatry, radiology, DME, lab and pharmacy.  This investment underscores Centene's commitment to provide integrated care for the Aged, Blind and Disabled (ABD), Long-Term Care (LTC), Dual–Eligible, and Medicare populations. Under the terms of the transaction, Centene will acquire an approximate 68% interest in USMM. Mark Mitchell, the company's Founder and CEO, will continue to lead USMM and retain his existing management team.

"The partnership with USMM is the next step in Centene's strategy to provide a continuum of high quality services that allow us to effectively manage the complex needs of our growing high acuity populations. The integrated, home-based primary care model is a capability expansion for Centene.  This will allow us to offer quality healthcare services and programs for an aging population in the comfort of their own homes," said Michael F. Neidorff, Chairman and CEO of Centene. "We believe that there is significant opportunity to enhance access to health services and quality of life for complex populations by removing barriers to receiving care in the home.  We are pleased to partner with USMM to assist in the build out of a national platform that will improve quality and reduce medical costs for Centene and USMM's other managed care partners."

In conjunction with the investment in USMM, Centene is announcing the formation of a new healthcare enterprise holding company. This new independent enterprise will connect Centene and other health solution providers while preserving the entrepreneurial spirit and innovation which has led to improved health outcomes, development of a more efficient care model and the facilitation of sales to third party companies.

Mark Mitchell, CEO of USMM said, "USMM has been committed to providing high quality, compassionate and cost-effective in-home care to our patients for over 20 years and will continue to do so. We share Centene's core belief that integrated care models lead to improved quality, enhanced medical outcomes and cost efficient care. We are confident that we will drive meaningful results and enhance care delivery for Centene's growing high acuity population."

USMM is a national leader in house call medicine with comprehensive service offerings and depth of experience serving individuals with complex health needs. USMM, directly or through managed affiliates, conducts over 400,000 physician house calls annually and over 2,500 face-to-face patient interactions with licensed health care professionals on a daily basis.  USMM currently operates 39 local offices across 11 states, including seven states in which Centene currently operates.  Centene has over 150,000 existing high acuity members in these overlapping markets.

The transaction is expected to close in the first quarter of 2014, subject to customary closing conditions.  The purchase price for Centene's majority interest is approximately $200 million and is anticipated to be funded with a combination of approximately one-third cash and two-thirds Centene stock.  On an annualized basis, the transaction is expected to add revenue in the range of $220M to $240M.  The deal is expected to be accretive to earnings per share by $0.02 to $0.05 in 2014, excluding transaction costs. Centene expects to achieve medical cost savings as the USMM model is deployed across a larger percentage of Centene's high acuity members over time.  As a result, Centene expects the transaction to be accretive to earnings per share by $0.20 to $0.25 in 2015. 

Additional information regarding the transaction will be provided at Centene's investor presentation on Friday, December 13, 2013.

About Centene Corporation

Centene Corporation, a Fortune 500 company, is a leading multi-line healthcare enterprise that provides programs and related services to the rising number of under-insured and uninsured individuals. Many receive benefits provided under Medicaid, including the State Children's Health Insurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and Long-term Care (LTC), in addition to other state-sponsored/hybrid programs, and Medicare (Special Needs Plans). The Company operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, care management software, correctional systems healthcare, life and health management, managed vision, pharmacy benefits management, specialty pharmacy and telehealth services.

This information provided in this press release contains forward-looking statements about a transaction between Centene and USMM, including the potential benefits of the transaction and the anticipated timing of the completion of the transaction. Such information involves substantial risks and uncertainties including, among other things, whether and when Centene and USMM will satisfy the various closing conditions, including without limitation obtaining the required regulatory approvals; and economic, regulatory, competitive and other factors that may cause the actual benefits to be materially different from those expressed in this press release. Forward-looking statements speak only as of the date of this release and are based on information available at the time those statements are made, as well as management's views and assumptions regarding future events. You should not put undue reliance on any forward-looking statements. Centene does not undertake to update its forward-looking statements, except as required by law.

 


'/>"/>
SOURCE Centene Corporation
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Centene Corporation Selected for Ohio Medicaid Contract
2. Centene Corporation To Provide 2013 Financial Guidance And Host Investor Meeting In NYC On December 14, 2012
3. Earnings Releases, Investment Plans, Commencement of Clinical Trials, and FDA Applications Brighten Outlook - Research Report on Bard, Centene, Exact Sciences, Ironwood, and Merrimack
4. Positive Opinion, Stock Price Movement, and Executive Appointments - Research Report on Celgene, Sirona, Centene, Fresenius Medical Care, and PerkinElmer
5. Centene Specialty Pharma Subsidiary Receives Full URAC Accreditation
6. Precision Optics Corporation Announces $1 Million Order for Microprecision™ Based Endoscopes
7. CVS Caremark Corporation to Hold First Quarter 2012 Conference Call
8. Richard Wolf Medical Instruments Corporation: 40 Years of Innovation
9. Haemonetics Signs Definitive Agreement to Acquire Pall Corporations Blood Collection, Filtration and Processing Product Lines For $551 Million
10. Luminex Corporation Reports First Quarter 2012 Results
11. ShangPharma Corporation Files 2011 Annual Report on Form 20-F
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/19/2017)... YORK , April 19, 2017 The Mobile ... to showcase a healthy CAGR during the forecast period ... type in the global digital mobile X-Ray devices market, which ... Mn in 2017, expanding at a CAGR of 7% over ... absolute $ opportunity of more than US$ 100 Mn in ...
(Date:4/19/2017)... , April 19, 2017  Vanderbilt University Medical ... patients in Nashville , Tennesse have ... Esophageal Sphincter Stimulation for GERD (LESS GERD) trial. The ... provide long-term reflux control by restoring normal function to ... 65 million people in the United States ...
(Date:4/19/2017)...  New research provides evidence that an old drug may ... study released today that will be presented at the ... Boston , April 22 to 28, 2017. ... disease, the oral drug levodopa has long been considered the ... the disease progresses, the effects of the medication can partially ...
Breaking Medicine Technology:
(Date:4/27/2017)... ... April 27, 2017 , ... ... On the heels of Thinksport’s award-winning sunscreen they’ve used the same scientific approach ... works! , Countless deodorants flood the aisles that contain harmful chemicals that should ...
(Date:4/27/2017)... ... April 27, 2017 , ... ... 2017 North American CAREGiverSM of the Year for her extraordinary compassion and lifelong ... its 60,000 North American professional caregivers for the prestigious award each year – ...
(Date:4/27/2017)... , ... April 27, 2017 , ... Goodcents Deli Fresh ... in the Lincoln, Neb. area this year. , The first new location will ... second location will open at 84th and Northern Lights Drive this fall. And the ...
(Date:4/27/2017)... ... 27, 2017 , ... Are you investing in the safety of your friends ... during the summer. While most of us assume this type of accident will never ... few people are taking the time to learn how to respond effectively or prevent ...
(Date:4/26/2017)... MN (PRWEB) , ... April 26, 2017 , ... ... that improve supply management in hospitals, today announced it has completed a round ... Black Granite Capital LLC and its partners. Black Granite Capital is a growth ...
Breaking Medicine News(10 mins):