RELEASE: Centene to acquire Community Medical Group to expand its provider assets

ST. LOUIS /PRNewswire/ — Centene Corporation (NYSE: CNC) announced today that it has signed a definitive agreement to acquire Community Medical Holdings Corp., dba Community Medical Group (“CMG”), a leading, at-risk primary care provider, serving over 70,000 Medicaid, Medicare Advantage, and Health Insurance Marketplace program patients in Miami-Dade County, Florida.

“The addition of CMG will provide Centene with a differentiated care delivery asset that shares our focus and commitment to government-sponsored programs and creates a foundation for future growth,” said Michael F. Neidorff, Chairman and CEO of Centene. “CMG’s unique clinical care model, encompassing primary care, access to certain specialty services and a suite of social and other support services is delivering better health outcomes at lower costs, and is clearly aligned with Centene’s purpose of transforming the health of the community, one person at a time.”

“We are pleased about the opportunity to become part of the Centene family,” said Luis H. Izquierdo, President and CEO of CMG. “We currently partner with Centene and most leading health plans to provide primary and specialty care to thousands of their members in the South Florida region. Benefiting from Centene’s scale, we look forward to expanding our geographic footprint while continuously improving outcomes and increasing value by incrementally deploying primary care and social services to the members who need them most.”

Strategic Benefits of the Transaction

  • CMG is the leading at-risk provider in Miami-Dade County with a unique focus on providing clinical and social care to Medicaid, Medicare Advantage and Health Insurance Marketplace recipients.
  • The acquisition increases Centene’s scale and capabilities, adding a premier Medicaid-focused provider group to Centene’s existing in home primary care and correctional care assets, with a demonstrated ability to generate medical cost savings.
  • CMG brings an experienced management and clinical team, passionate about the delivery of care to the underserved population.
  • CMG also has a strong network of health plan clients and Centene is committed to a multi-payor strategy.
  • The acquisition provides a platform for expansion of the model across Floridaand potentially into other states.

Financing and Approvals

Under the terms of the purchase agreement, Centene has the ability to fund the purchase with cash, or alternatively, a combination of cash and Centene stock. The transaction is expected to have a neutral impact to GAAP and adjusted EPS in 2018 and to be slightly accretive (low single digits) to GAAP and adjusted EPS in 2019.

The transaction is expected to close in the first quarter of 2018, subject to the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions.

About Centene Corporation
Centene Corporation, a Fortune 100 company, is a diversified, multi-national healthcare enterprise that provides a portfolio of services to government sponsored and commercial healthcare programs, focusing on under-insured and uninsured individuals. Many receive benefits provided under Medicaid, including the State Children’s Health Insurance Program (CHIP), as well as Aged, Blind or Disabled (ABD), Foster Care and Long-Term Services (LTSS), in addition to other state-sponsored programs, Medicare (including the Medicare prescription drug benefit commonly known as “Part D”), dual eligible programs and programs with the U.S. Department of Defense and U.S. Department of Veterans Affairs. Centene also provides healthcare services to groups and individuals delivered through commercial health plans. Centene operates local health plans and offers a range of health insurance solutions. It also contracts with other healthcare and commercial organizations to provide specialty services including behavioral health management, care management software, correctional healthcare services, dental benefits management, commercial programs, home-based primary care services, life and health management, vision benefits management, pharmacy benefits management, specialty pharmacy and telehealth services.

Centene uses its investor relations website to publish important information about the Company, including information that may be deemed material to investors. Financial and other information about Centene is routinely posted and is accessible on Centene’s investor relations website,

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