Health insurer Centene acquired government healthcare consultant Fidelis for 3.75 billion USD
The health insurer Centene acquired non-profit leader in government healthcare plans Fidelis for 3.75 billion USD. The asset purchase will bring Centene more than 1.6 million new members in New York state, spread across the Medicaid, Medicare Advantage and Obamacare exchange markets. It generated 4.8 billion USD in revenues for the six-month period ending June 20.
“We think there is tremendous potential here”, said the CEO of Centene, Michael Neidorff. “Centene’s and Fidelis Care’s missions are fully aligned in terms of promoting health through high quality, accessible care and services for all and advocating for health policy that accords true dignity and respect for all people, especially the underserved”, added he.
The executives say the transaction is being structured as an asset purchase, rather than an outright acquisition, because of New York state regulations surrounding the sale of nonprofit firms.
The deal will turn Centene into a larger national player with 60 billion USD in annual revenue by next year.
Centene focuses most of its business on the state and federal Medicaid programs for the poor, but it has also expanded into several states over the past year through the ACA’s exchanges.