Centene Corporation Announces Joint Venture With Group Practice Affiliates LLC, a Behavioral Healthcare Company; Acquires Assets of ScriptAssist, LLC, A Medication Compliance Company.Business Editors/Health/Medical Writers ST. LOUIS--(BUSINESS WIRE)--March 3, 2003 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. (Nasdaq: CNTE) today announced that it has acquired a 63.7% ownership interest in Group Practice Affiliates, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (GPA GPA abbr. grade point average Noun 1. GPA - a measure of a student's academic achievement at a college or university; calculated by dividing the total number of grade points received by the total number attempted ). GPA, an Atlanta, Georgia-based behavioral healthcare services company, serves over 700,000 individuals in three states through a combination of networks, groups and schools, including Centene's Texas membership of approximately 118,000. Under the terms of the agreement, GPA will continue to operate and be managed as an independent entity with a separate Board of Directors. The transaction was effective March 1, 2003. Michael F. Neidorff, President and Chief Executive Officer of Centene, stated, "This joint venture brings us important expertise in the area of behavioral healthcare that will benefit our current Medicaid population and fits within our stated strategy to be a multi-line government services company. This strategic investment, together with our 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. line, supports our goal of being a high quality, low cost healthcare producer. It also helps us to demonstrate to states our ability to manage our medical expenses and to be recognized as part of the state's solution to their budget deficits. Today, 6% of our ambulatory care ambulatory care n. Medical care provided to outpatients. ambulatory care, n the health services provided on an outpatient basis to those who can visit a health care facility and return home the same day. is behavioral health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or . Behavioral issues are often overlooked when patients are diagnosed; consequently, this investment will allow us to be proactive in an area that merits significant attention. Equally important, it will enable Centene to have a focused and specialized capability as we expand our SSI (1) See server-side include and single-system image. (2) (Small-Scale Integration) Less than 100 transistors on a chip. See MSI, LSI, VLSI and ULSI. 1. (electronics) SSI - small scale integration. 2. membership, a population that has a much larger, more chronic behavioral health component. John Tadich, our Senior Vice President of Specialty Companies, will oversee the development of our strategic entry into the specialty and behavioral health arena, working closely with GPA's seasoned management who will continue to run the day to day operations." Steve Daniels, Chief Executive Officer of Group Practice Affiliates, LLC said, "We are excited about the opportunity to expand our relationship with Centene, bringing to it our behavioral healthcare expertise to enable both companies to provide better access and services to patients. Based upon our successful track record and the strength of our existing relationships, we believe that we will be able to continue to expand our business. Our business outside of Centene gives us financial diversity as well as the ability to manage the full array of behavioral problems." Mr. Tadich commented, "Our current successful relationship with GPA gives us great confidence that we can develop an integrated healthcare strategy. There are numerous areas of overlap between behavioral and physical care that can be better coordinated with organizations such as GPA. Additionally, it will enable us to leverage our NurseWise(SM) triage program to provide access to a nurse 24 hours a day, 7 days a week." The initial purchase price was $4.1 million, with an additional investment of up to $1.7 million to be made in June 2004 based on GPA's 2003 performance and other factors. After a three-year term of the joint venture, Centene will have the option to acquire the remaining interest in GPA based upon a pre-determined formula. Neidorff concluded, "We currently estimate that this joint venture will add $11 million to $13 million in revenue and earnings of $0.02 to $0.03 per share in 2003." In addition, Centene announced that it has acquired the assets of ScriptAssist, LLC, a medication compliance company, for $500,000. ScriptAssist uses various approaches and medical expertise to promote adherence to prescription drugs prescription drug Prescription medication Pharmacology An FDA-approved drug which must, by federal law or regulation, be dispensed only pursuant to a prescription–eg, finished dose form and active ingredients subject to the provisos of the Federal Food, Drug, and is being integrated into Centene's NurseWise subsidiary. As previously announced, Michael F. Neidorff, Centene's President and Chief Executive Officer, will present on Tuesday, March 4, 2003 at 2:30 pm Eastern Time at the Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Global Healthcare Conference. Mr. Neidorff intends to discuss these transactions briefly at this conference. The presentation will be available at www.lehman.com/conferences/healthcare2003invitation as a live audio webcast, and then on archive until March 11, 2003. About Centene Corporation Centene Corporation provides managed care programs and related services to individuals receiving benefits under Medicaid, including Supplemental Security Income Supplemental Security Income A Social Security program established to help the blind, disabled, and poor. (SSI), and 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 ). Centene operates health plans in Wisconsin, Texas, Indiana and New Jersey. Information regarding Centene is available via the Internet at www.centene.com About Group Practice Affiliates, LLP LLP - Lower Layer Protocol GPA provides comprehensive behavioral health products and services to both Medicaid and commercial members through behavioral health networks, groups, schools, and programs to serve children, adolescents and adults in Arizona, California and Texas. In Arizona, GPA provides services to special needs children, and operates seven schools serving emotionally challenged and learning disabled children throughout the state. The second, fourth and sixth paragraphs of this press release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 successfully integrate and manage the proposed acquisition of GPA, its ability to accurately predict and effectively manage health costs 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 health care practices, changes in federal or state laws or regulations, inflation, provider contract changes, new technologies, reduction in provider payments by governmental or other payors, major epidemics, disasters and numerous other factors affecting the delivery and cost of healthcare. The expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created , cancellation or suspension of Centene's Medicaid managed care contracts by state governments would also negatively affect Centene. |
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