Health insurer Centene said it was examining its “non-core assets” as part of an effort to streamline its operations and expand into new U.S. markets.
Centene, which is known for providing government-subsidized health insurance in the U.S., said Friday it is “reviewing its non-core assets as part of its ongoing portfolio optimization processes, including evaluating strategic alternatives for its international business.”
The announcement, made as part of Centene’s annual investor day, comes as the company is on the verge of bolstering its U.S. health insurance offerings with Magellan Health, which sells and manages behavioral health services. Centene is hoping to close its Magellan Health acquisition by the end of this year, the company said.
Centene expects 2022 revenue of $135.9 billion to $137.9 billion, which was above most analysts expectations. That forecast compares to 2021 total revenue guidance of between $125.2 billion to $126.4 billion that the company affirmed Friday.
International operations are a small fraction of Centene’s overall business. In a slide presentation Friday, Centene’s international business showed revenue of more than $2 billion and included operations in the United Kingdom and Spain. The company also has hospitals in these markets.
Meanwhile, Centene has already been growing into a larger company in the U.S. as more Americans sign up for Medicaid, the health insurance for low income Americans it manages via contracts with states and individual coverage under the Affordable Care Act known as Obamacare, which is experiencing record growth this year under President Biden. And Centene has been expanding into the business of Medicare Advantage, the privatized health benefits myriad health insurers offer senior via contract with the federal government.
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“Our Medicaid, Medicare, and Marketplace products are well positioned amid a dynamic and evolving healthcare landscape,” Centene chairman and chief executive officer Michael Neidorff said. “The strong leadership from our executive teams and the dedication of our employees to support our valued members have allowed us to grow our capabilities to now serve the healthcare needs of nearly 1 in 15 Americans across all 50 states.”