Thread regarding Centene Corp. layoffs

Where is Centene actually going? Look at their investments and direction.

Centene was the lead investor in an $18 million Series B round for Diameter Health, an enterprise data interoperability developer. https://www.fiercehealthcare.com/tech/centene-optum-ventures-back-18m-investment-diameter-health-to-spur-health-data

Centene recently finalized their acquisition of Apixio (AI-assisted clinical data mining) and is acquiring Pantherx, a specialty pharmacy focused on orphan medications and rare diseases, to blend into Envolve Pharmacy Solutions.

Meanwhile they've outsourced marketing for (primarily) the plans and had layoffs across the board in other departments.

I don't think you need a weatherman to tell everyone where the wind is blowing here. My guess here, is that Centene is reconstructing along the lines of Optum and UnitedHealthcare. At the very minimum, there will be a split in the company with one part in advanced services–some wholly owned, others captured through investment–and pharmacy, with the milk cow being the plans. Think of how boring and basic UHG's marketing is, much of it with AARP. Look at Aetna. Most of the advertising for MA and dual this year was via brokers. It doesn't have to be different or even branded–and in a Biden administration, health plans may quickly turn into a money pit, Federalized entity as the plan there is 'Medicare for all'.

Let's not forget that Centene has never been a brand–it's a holding company. Devaluing brand was baked into the company and into marketing.

MFN is, in my view, as his final move at age 75, year 25 as CEO, reorganizing the company. This is a cold business calculation of savings and people. People are an expense. Marketing is an expense. Branding is an expense. These type of services may require some branding and communications services, but that can be outsourced and don't require the compliance lift of MA Medicaid, or CMS models. There may be even a sale of plans if this redirection goes further.

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| 3401 views | | 5 replies (last February 10, 2021) | Reply
Post ID: @OP+18xiC4Q1

5 replies (most recent on top)

Humana and Anthem are absolutely going to dominate the new Marketplace customers and Medicaid state renewals in 2021 and 2022. Centene had good run while nobody else wanted the 2.5% margins.

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Post ID: @Oeel+18xiC4Q1

Centene made it very clear they are seeking to be a technology company that also does healthcare during the December Investor days. BUT, Centene signed on and opened their doors to AWS and AWS learned exactly what it takes to become a Healthcare Payer like Centene. Amazon Health is scaling out now along with Amazon RX. While Centene focuses on integration of HNET from 4 years ago, along with Fidelis, Wellcare and now Magellan, every single competitor is acquiring their members. Summary-Centene will never compete with AWS/AMAZON or OPTUM, both technology companies who just happen to do healthcare. It is likely best for MFN to step down and CIO and CTO be replaced for their AWS mistakes.

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Post ID: @Npcb+18xiC4Q1

Today's announced acquisition of behavioral health giant Magellan Health for $2.2 billion is only confirmation of the above.

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Post ID: @krve+18xiC4Q1

I believe that they will deal mainly with brokers going forward and let the brokers do the marketing work for MA, though I don't know how that would work for Medicaid as I wasn't close to that. Centene has already pushed marketing to a third party (HLK) and will retain a few people to supervise and make sure it's compliant. Again, a 'cash cow' strategy that cuts expense, boosts the share price. Now how this works for specialized units like Envolve and Collaborative Health?–well, I believe the latter will be spun off and/or sold as it's a lot of work and people to make it work.

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Post ID: @kujy+18xiC4Q1

States are increasingly struggling afford to paying for the Medicaid plans that Centene is composed of, and COVID has forced most of the work to be done remotely.

As a result, Centene will also follow the lead of UHG as it relates to UM and CM staff not being located in the physical state of the plan. ...they merely need to be licensed in said state.

This will allow cost savings (ie profits) for Centene.

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Post ID: @5dub+18xiC4Q1

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