Centene Corporation to Acquire Majority Stake in Fidelis SecureCare of Michigan
Enters Michigan market to serve dual-eligibles
ST. LOUIS, Dec. 18, 2013 /PRNewswire/ -- Centene Corporation (NYSE: CNC) ("Centene") announced today that it has signed a definitive agreement to purchase a majority stake in Fidelis SecureCare of Michigan, Inc. ("Fidelis SecureCare"), a subsidiary of Fidelis SeniorCare, Inc. ("Fidelis"). Fidelis SecureCare was recently selected by the Michigan Department of Community Health as one of six health plans to provide integrated healthcare services to members who are dually eligible for Medicare and Medicaid in Macomb and Wayne counties. The program is expected to serve approximately 90,000 of the dual-eligible beneficiaries in the state, with enrollment expected to commence in the fourth quarter of 2014. Fidelis is a leader in the development of Medicare Advantage Special Needs Plans for eligible individuals residing in their own homes, nursing homes and assisted living communities, with extensive knowledge and experience in caring for people with complex chronic conditions.
Under the arrangement, Centene and Fidelis will own and operate the Fidelis SecureCare Michigan health plan. Fidelis' affiliated SecureHome clinics in metropolitan Detroit, which are not part of the acquisition, will continue to provide integrated primary care to plan members according to the care model that was, in part, the basis for Fidelis' award. The SecureHome clinics have demonstrably higher quality and reduced utilization relative to dual-eligible benchmarks, via their high touch, coordinated care model approach to frail and chronically ill patients.
"Centene is pleased to partner with Fidelis to continue their tradition of providing integrated care to frail and chronically ill individuals in Michigan," said Jesse N. Hunter, Executive Vice President and Chief Business Development Officer for Centene. "This announcement marks our entry into a fourth market serving dual-eligible populations. Centene and Fidelis share a common commitment of providing locally-driven, comprehensive care focused on the whole health of the individuals we serve."
"Fidelis is honored to have been one of the awardees in Michigan's Demonstration Program. We are further excited to be partnering with Centene in this effort, as it is a company that shares our commitment to providing high quality care and services to vulnerable populations,"said Sam Willcoxon, President and CEO of Fidelis. "Through our SecureHome care model, we will work with Centene to deliver expert clinical care and care coordination to dual eligible beneficiaries in Wayne and Macomb counties."
The transaction is expected to close in the fourth quarter of 2014, subject to certain closing conditions including regulatory approvals, and will involve cash purchase price payments contingent on the performance of the plan over the course of 2015.
About Centene Corporation
Centene Corporation, a Fortune 500 company, is a leading multi-line healthcare enterprise that provides programs and related services to the rising number of under- insured and uninsured individuals. Many receive benefits provided under Medicaid, including the State Children's Health Insurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and Long-term Care (LTC), in addition to other state-sponsored/hybrid programs, and Medicare (Special Needs Plans). The Company operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, care management software, correctional systems healthcare, life and health management, managed vision, pharmacy benefits management and telehealth services. More information regarding Centene is available at www.centene.com.
About Fidelis SeniorCare
Fidelis SeniorCare is a private company headquartered in Schaumburg, IL. The Company provides expert clinical care and care coordination services to dual- eligible beneficiaries through its SecureHome clinics. Fidelis SeniorCare operates as a Medicare Advantage Plan ("Fidelis SecureCare") or as a trusted partner to Medicare Advantage Plans, in Michigan and Washington. More information about Fidelis is available at www.fidelissc.com.
This information provided in this press release contains forward-looking statements about a transaction between Centene and Fidelis SeniorCare, including the potential membership, anticipated timing of enrollment, and the anticipated timing of the completion of the transaction. Such information involves substantial risks and uncertainties including, among other things, whether and when Centene and Fidelis SeniorCare will satisfy the various closing conditions, including without limitation obtaining the required regulatory approvals; and economic, regulatory, competitive and other factors that may cause the actual circumstances to be materially different from those expressed in this press release. Forward-looking statements speak only as of the date of this release and are based on information available at the time those statements are made, as well as management's views and assumptions regarding future events. You should not put undue reliance on any forward-looking statements. Centene does not undertake to update its forward-looking statements, except as required by law.
SOURCE Centene Corporation
Released December 18, 2013