Centene Announces Definitive Agreements to Expand in South Carolina and Exit New Jersey.ST. LOUIS -- Centene Corporation Centene Corporation is in the industry of Medicaid managed care. Centene is a multi-line healthcare enterprise operating primarily in two segments: Medicaid Managed Care and Specialty Services. (NYSE NYSE See: New York Stock Exchange : CNC (Computerized Numerical Control) See numerical control. CNC - Collaborative Networked Communication ) announced today that it has simultaneously executed definitive agreements to acquire certain assets of AMERIGROUP Community Care of South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. , a wholly-owned subsidiary of AMERIGROUP Corporation, and to sell to AMERIGROUP certain assets of University Health Plans, Inc., a wholly-owned subsidiary of Centene. As of September 30, 2008, University Health Plans and AMERIGROUP Community Care of South Carolina had approximately 55,000 and 9,000 members, respectively. Both transactions, which are subject to the approval of regulators in their respective states, are expected to be completed during the first quarter of 2009. Michael F. Neidorff, Chairman and Chief Executive Officer of Centene Corporation, stated, "This strategic redeployment re·de·ploy tr.v. re·de·ployed, re·de·ploy·ing, re·de·ploys 1. To move (military forces) from one combat zone to another. 2. of assets is consistent with our portfolio approach to managing our business. It will further enhance the positioning of our subsidiary, Total Carolina Care, by strengthening our platform for future organic growth throughout South Carolina. Our disciplined market share strategy for New Jersey was not being realized at the level of operational and financial efficiency necessary at this time to further cultivate this as a long-term market investment." Mr. Neidorff also added, "We are fortunate to be able to work with AMERIGROUP on these mutually beneficial transactions in order to strengthen our respective strategic positions while continuing to ensure that access to quality healthcare is provided to our members in New Jersey and South Carolina." The financial impact of both transactions will be discussed during Centene's 2009 financial guidance conference call on December 19, 2008. About Centene Corporation Centene Corporation is a leading multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including the State Children's Health Children's Health Definition Children's health encompasses the physical, mental, emotional, and social well-being of children from infancy through adolescence. Insurance Program (SCHIP SCHIP State Children's Health Insurance Program ), as well as Foster Care, Aged, Blind, Disabled (ABD ABD n. A candidate for a doctorate who has completed all the requirements for the degree, such as courses and examinations, with the exception of the dissertation. [a(ll) b(ut) d(issertation).] ), Long-Term Care long-term care (LTC), n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. and Medicare (Special Needs Plans). The Company operates local health plans and offers a range of healthcare solutions for the rising number of uninsured Americans. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, life and health management, managed vision, nurse triage triage Division of patients for priority of care, usually into three categories: those who will not survive even with treatment; those who will survive without treatment; and those whose survival depends on treatment. , pharmacy benefits management and treatment compliance. Information regarding Centene is available via the Internet at www.centene.com. The information provided in this press release contains forward-looking statements that relate to future events and future financial performance of Centene. Subsequent events and developments may cause the Company's estimates to change. The Company disclaims any obligation to update this forward-looking financial information in the future. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause Centene's or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Actual results may differ from projections or estimates due to a variety of important factors, including Centene's ability to accurately predict and effectively manage health benefits and other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , competition, changes in healthcare practices, changes in federal or state laws or regulations, inflation, provider contract changes, new technologies, reduction in provider payments by governmental payors, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare. The expiration, cancellation or suspension of Centene's Medicaid Managed Care contracts by state governments would also negatively affect Centene. |
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