Health insurer Centene Corp. plans to acquire Carolina Crescent Health Plan and expand its South Carolina Medicaid enrollment.
Centene to get health plan
Deal for Crescent expected to close in third quarter
The St. Louis company said its South Carolina subsidiary, Absolute Total Care, signed an agreement to acquire not-for-profit Carolina Crescent from VCU Health System, Richmond, Va., which is part of Virginia Commonwealth University. The deal is expected to close in the third quarter, pending regulatory approval. Terms were not disclosed.
Carolina Crescent serves more than 40,000 Medicaid members across the state. Centene said the deal will add revenue ranging from $55 million to $65 million this year and between $115 million and $130 million on an annual basis. The insurer expects it to add about 2 cents to 3 cents to earnings per share this year and 9 cents to 11 cents annually.
With the acquisition, Absolute Total Care will provide Medicaid managed-care services for about 90,000 people in the state.
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