Centene generates $568M in profit in Q3 as WellCare deal takes hold

https://www.fiercehealthcare.com/payer/centene-generates-profit-q3-as-wellcare-deal-takes-hold-and-risk-corridor-payment-settlement

The WellCare acquisition boosted total revenue to $29.1 billion for the third quarter, a 53% bump over the same time period last year, which is logical given the WellCare acquisition. But when you read the article, 70% of the profit of $568 million was generated by a one-time settlement of $398 million by the Federal government over risk corridors, an ACA payment to cover high risk enrollees. Take that out and the profit through earnings is $170 million, a decent raise over 3rd Q 2019 of $95 million but certainly to be expected when your revenue increases through an acquisition over 50%.

Is there anyone who is looking as cynically as I am at this, thinking that MFN is making lemonade out of lemons, and that more cuts are on the way to prep for a sale at a maximum number? His statement about reinvestment in operations is comical given the layoffs.

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Interesting that per comments on other threads, Centene is buying businesses in areas like data analytics to cut costs in administration and specialty pharma (Apixio and Pantherx respectively) to boost other service areas and operate them to gain third-party business outside of Centene. Health plans are regulated, not profitable except in government payments, and may be going the way of the dodo in this next administration. To think that any investment will be made in people working in the plans is wishful thinking. The proof will be where the layoffs hit and the freezes made.

Always keep in mind that Centene has a 75 year old CEO, in place for 25 years, and no succession plan.

HOW much is ENOUGH, MFN????
Is it worth making your mega millions, and destroying families with layoffs?

Do you have ANY idea the mental anguish and stress people that are laid off, go through?
No, of course you don't. You and your Senior management only care about profits, and bonuses.

You had a great company at one time. You destroy the companies you have bought, with layoffs. Morale is at an all time low.

They are playing tetris with unqualified leaders promoting people and moving them into positions they have little experience or knowledge in.

Most training leadership has no training background. Much like leadership in many departments in this company.

Given the state of centene training, centene university is a joke.

Does anyone else think that Centene University is an expensive joke?

It’s disgusting how much they made, when you look at all the recent layoffs from Centene, WellCare, and Healthnet.

Keep stepping on the little guys who got you there. Karma will be a b–ch!

More layoffs and demotions are coming.

Thread regarding Centene Corp. layoffs

Centene generates $568M in profit in Q3 as WellCare deal takes hold

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