St. Louis —Centene Corp. has announced that
Louisiana Healthcare Connections, a subsidiary of Centene, has been selected to contract with the Louisiana Department of Health and Hospitals to serve Medicaid beneficiaries in Louisiana. Louisiana Healthcare Connections is a joint venture between Centene and the Louisiana Partnership for Choice and Access, an organization comprised of 19 non-profit Louisiana Federally Qualified Health Centers (FQHCs). Centene owns a 51 percent interest in Louisiana Healthcare Connections, will be responsible for management of the health plan operations and will deploy its specialty company subsidiaries where applicable. The contract has a three-year term with the potential for a two-year extension.
Approximately 875,000 beneficiaries will be eligible to be served by coordinated care networks in the state's three Geographic Services Areas (GSAs). Louisiana Healthcare Connections will provide healthcare services to Medicaid enrollees in each of the state's three GSAs. Services for these members are expected to begin in the first quarter of 2012, with a three-phased membership roll-out ending in the second quarter of 2012.
"We are honored to be selected to offer the citizens of Louisiana coordinated healthcare services and programs," said Jesse Hunter, Executive Vice President of Corporate Development and Operating Group Chairman of Centene. "Centene and our partner FQHCs share a vision of providing accessible, high-quality care for the medically underserved populations in Louisiana and we look forward to working together to execute on that vision."
"This contract will mark Centene's entry into its 14th state, and with it comes our continuing commitment to working side-by-side with providers in delivering high-quality care that improves the medical outcomes for our members in a cost-effective manner," said Michael F. Neidorff, Centene's chairman and CEO.
Our preliminary estimates indicate that we will serve 160,000 to 180,000 members in Louisiana generating annualized revenue of $330 million to $370 million. Updated financial guidance including this award will be provided during Centene's 2011 second quarter financial results conference call on July 26, 2011.
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