(Source: Business Wire)
Centene Corporation (NYSE: CNC) today announced its net earnings from
continuing operations for the quarter ended September 30, 2009 were
$22.7 million, or $0.51 per diluted share, compared to $18.1 million, or
$0.41 per diluted share in the third quarter of 2008. The results of
operations for our New Jersey health plan, University Health Plans, are
classified as discontinued operations. The discussions below, with the
exception of cash flow information, are in the context of continuing
operations and all financial ratios are calculated using revenues
excluding premium taxes and investment income.
Third Quarter Highlights
Quarter-end managed care at-risk membership of 1,386,400, an increase
of 215,300 lives year over year.
Premium and Service revenues of $987.3 million, representing 18.1%
year over year growth.
Health Benefits Ratio (HBR) of 83.7%.
General and Administrative (G&A) expense ratio of 13.2%.
Cash flow from operations of $114.9 million.
Days in claims payable of 47.1.
Diluted earnings per share from continuing operations of $0.51,
compared to $0.41 in the third quarter of 2008. Earnings per diluted
share in 2008 included a $0.06 loss on investments from the Primary
Reserve fund.
Other Events
On August 31, 2009, Centene announced that the State of Massachusetts
had accepted its proposal to manage healthcare services for the
Commonwealth Bridge Program through its subsidiary, CeltiCare Health
Plan of Massachusetts, effective October 1, 2009, through June 30,
2010.
Effective September 1, 2009, Centene converted 62,100 members in
Florida from Access Health Solutions to at-risk under our Sunshine
State Health Plan.
On October 24, 2009, Centene announced a settlement agreement with
Amerigroup Corporation associated with the sale of our New Jersey
health plan. Pursuant to the settlement agreement, the parties will
move forward with the transaction, which is subject to regulatory
approval and expected to be completed in the first quarter of 2010.
In August 2009, Jason Harrold, president and CEO of OptiCare Managed
Vision, Inc. was appointed to Senior Vice President of Centene's
Specialty Business Unit. Mr. Harrold assumed the leadership role over
the specialty companies previously held by William Scheffel.
On October 26, 2009 our Board of Directors approved an extension of
our stock repurchase program.
Michael F. Neidorff, Centene's Chairman and Chief Executive Officer,
stated, "We are pleased with the ability of our team to deliver solid
results across Centene's products and markets in a challenging economic
environment."
The following table depicts membership in Centene's managed care
organizations, by state, at September 30, 2009 and 2008:
Exception caught in main.
The following table depicts membership in Centene's managed care
organizations, by member category, at September 30, 2009 and 2008:
September 30,
2009 2008
Medicaid 1,040,500 850,500
CHIP & Foster Care 263,400 261,800
ABD & Medicare 82,500 58,800
Total at-risk membership 1,386,400 1,171,100
Non-risk membership 63,200 3,700
Total 1,449,600 1,174,800
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Statement of Operations
For the third quarter of 2009, Premium and Service Revenues increased
18.1% to $987.3 million from $835.7 million in the third quarter of
2008. The increase was primarily driven by premium rate increases and
membership growth in all states, including the commencement of our
Arizona acute care contract in October 2008, the consolidation of
Access and conversion of members to our at-risk plan in Florida.
The consolidated HBR, which reflects medical costs as a percent of
premium revenues, was 83.7%. A reconciliation of the change in HBR
from the prior year same period and from the immediately preceding
quarter is presented below:
Q3:2009 vs. Q3:2008 Q3:2009 vs.