https://finance.yahoo.com/news/why-centene-corporation-cnc-declined-044653779.html
6 replies (most recent on top)
Centene doesn't put people on PIPs anymore, they just lay people off without warning due to "budget cuts". Downsizing in preparation to see the company makes sense, I had been suspecting that since 2023.
You’d be surprised who may be in the market. And by the way, there’s nobody saying the entire company would be sold to one buyer.
But who would buy them? United Healthcare is in utter turmoil, Humana looks to be more of a seller than a buyer, CVS looks to be increasingly regretting their acquisition of Aetna.
I've strongly felt this was their goal after Politan Capital started calling the shots. They're selling off real estate and businesses, eliminating whatever positions they can, outsourcing as much as possible. Cut operating costs drastically to make it more appealing for sale. I also think this is why they seem to feel it is acceptable to have consistently poor customer service now, if it means they don't have to pay FTE's and their benefits anymore. Who would accept that if they weren't actively trying to run a company downhill to prep it for a sale? Isn't that how hedge fund companies work? Sell off companies, piece by piece, to maximize their personal profits.
Exactly what Wellcare did years before selling to Centene. You have to show multiple quarters of cost control and get your EBITDA looking good.
This performance, over the last several years, leads me to believe they are setting up to be bought out soon. They are cutting staff like crazy and shutting down spending - this makes me think they are focused on their bottom line and looking good. We will see...