Centene to Acquire Medicaid, Medicare Advantage Provider Group
Centene plans to acquire a provider group that would add nearly 70,000 Medicaid, Medicare Advantage, and marketplace plan holders.
Source: Thinkstock
By - Centene signed an agreement to acquire Florida-based Community Medical Holdings Corp (CMG), a community medical group, to expand Centene’s Medicaid, Medicare Advantage (MA), and marketplace health plan businesses.
Centene stated in a press release that the acquisition provides strategic advantages for improving its care capabilities and increasing its market presence and profitability.
The payer recognizes CMG as the leading at-risk provider for treating Medicaid, Medicare Advantage, and marketplace plan holders, which could improve Centene members’ overall quality of care.
Additionally, CMG ownership would provide Centene the ability to scale its overall health plan operations, improve its home primary health capabilities, and drive medical cost savings with underserved populations. CMG manages nearly 70,000 Medicaid, Medicare, and Medicare Advantage members.
Centene Chairman and CEO Michael F. Fiedorff explained that incorporating CMG into Centene operations will drive future improvements to creating effective government-sponsored programs that create better care quality and save on care expenses.
"The addition of CMG will provide Centene with a differentiated care delivery asset that shares our focus and commitment to government-sponsored programs and creates a foundation for future growth," said Neidorff.
"CMG's unique clinical care model, encompassing primary care, access to certain specialty services and a suite of social and other support services is delivering better health outcomes at lower costs, and is clearly aligned with Centene's purpose of transforming the health of the community, one person at a time."
Leaders at CMG also are enthusiastic that the deal can create more opportunities for CMG providers to efficiently deliver care to vulnerable patients across Florida.
"We are pleased about the opportunity to become part of the Centene family," said CMG President and CEO Luis H. Izquierdo.
“We currently partner with Centene and most leading health plans to provide primary and specialty care to thousands of their members in the South Florida region,” Izquierdo added. “Benefiting from Centene's scale, we look forward to expanding our geographic footprint while continuously improving outcomes and increasing value by incrementally deploying primary care and social services to the members who need them most."
