St. Louis -- Centene Corp. has announced that Kentucky Spirit Health Plan, a wholly-owned subsidiary of Centene, has executed a contract with the Kentucky Finance and Administration Cabinet to serve Medicaid beneficiaries in Kentucky.
Kentucky Spirit Health Plan will be headquartered in Lexington, Ky., and will provide integrated healthcare services to Medicaid recipients in all regions awarded by the Commonwealth. The contract has an initial three-year term with the potential for four one-year extensions.
"We look forward to working with Governor Beshear's administration to offer the Commonwealth of Kentucky high-quality healthcare at a lower cost," said Jesse Hunter, Executive Vice President of Corporate Development and Operating Group Chairman of Centene. "This contract marks Centene's entry into its 13th state, and we feel it exemplifies the benefits of integrating our multi-line approach of health and specialty services. We are proud to continue our successful track record in Medicaid procurements by being selected to serve in seven regions by the Commonwealth."
We expect to serve approximately 180,000 members in Kentucky generating annual revenues in excess of $700 million. The contract is expected to commence in the fourth quarter of 2011. Updated financial guidance including this contract award will be provided during Centene's 2011 second quarter financial results conference call on July 26, 2011.
"We are gratified to be able to begin serving the Commonwealth of Kentucky while preserving our normal margins for a new business," said Michael F. Neidorff, Chairman and Chief Executive Officer of Centene.