Centene enters New York in a new $3.85BN agreement with Fidelis Care
Multinational healthcare company Centene Corp is expanding into new markets, and is set to enter New York in a new deal with non-profit health insurer Fidelis Care.
As a result of New York’s rulings surrounding the acquisition of non-profit companies, the deal is being regarded as an asset purchase, with Fidelis CEO remaining on board. Its current operations will remain standing in the city.
Centene shares rose upon the announcement of the deal, which is set to complete in Q1 in 2018.
At present, Fidelis Care is operational in over 60 states in the US, therefore expanding Centene’s market reach and subsequent membership numbers.
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Fidelis Care works to provide affordable health insurance coverage for children and adults through Medicaid, Qualified Health Plans, Child Health Plus, Essential Plan, as well as Medicare Advantage, Dual Advantage and Managed Long-Term Care.
We think there is tremendous potential here," said Michael Neidorff, Centene Chairman and CEO. "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."
The company is also set to enter Nevada in 2018, despite continual uncertainties surrounding President Trump’s position surrounding the healthcare sector.
With the addition of New York, Centene will have a leadership position in the country's four largest managed care states by membership – California, Florida, New York and Texas.