https://www.fiercehealthcare.com/payer/centene-reports-12m-profit-loss-q4-2020
https://investors.centene.com/news-releases/news-release-details/centene-corporation-reports-2020-results
The only place where Centene can chop is SG&A (selling, general, and administrative expense)
Thus the layoffs.
3 replies (most recent on top)
Freebird gets it. They do this every year. It's a convenient excuse. Centene has a massive war chest and has never been healthier. Anybody stating anything to the contrary has some kind of sadistic wishful thinking.
Good time to shed people they don’t like without having a paper trail or worrying about lawsuits. That’s the way this company rolls.
ALL the health plans were hammered in Q4 as utilization went way up. Practices reopened and people were sicker due to COVID and care catchup. This should have been anticipated. But hey, it's a great excuse to get rid of overhead.
My guess is that the long term plan is to sell Centene, sell off the plans, and strip Centene down to a service provider to other plans. Stripping down the company is the strategy that makes it more attractive to buyers.
If you are in a break-even unit that's not Federal or state-mandated, you'll be sold or shuttered.