- Centene released its financial results Tuesday for the first quarter of 2016, which included the company's March 24 acquisition of Health Net shortly before the end of the quarter.
- The company showed a $17 million loss for the quarter, primarily as part of $189 million in costs connected to the $6 billion Health Net acquisition.
- Centene made positive remarks during its conference call with investors regarding its newly combined marketplace business and impacts from Medicaid expansion, Modern Healthcare noted.
Centene's revenue reached $7 billion for the first quarter -- showing growth of 36% compared to the first quarter of 2015 -- and is projected to climb to $40 billion by the end of the year.
It reported a total of more than 11.5 million customers, noting an influx from the Health Net acquisition. It credits Medicaid expansion for 985,000 members across nine states.
Centene noted in its first quarter highlights that its Health Net acquisition included all of the company's issued and outstanding shares, as well as the assumption of debt. It noted the deal broadens Centene's service offerings, providing expansion in Medicaid and Medicare programs, and further diversifies its products across markets through contracts with the Department of Defense and the U.S. Department of Veteran's Affairs, as well as Medicare Advantage.
One notable risk to Centene's financials is the ongoing legal battle brought by the state of Kentucky over the company's ending of their Medicaid managed-care contract a year ahead of schedule in 2013, Modern Healthcare noted. If Kentucky gets the $174 million it claims Centene owes, that would be akin to Centene's 2015 profits being cut in half.