Centene acquires new clients as business continues to grow

The Centene Corp. announced an acquisition Tuesday that will significantly boost its business and could bode well for a medical claims processing center to be built in Great Falls.

By JAMES E. LARCOMBE

http://www.greatfallstribune.com/news/stories/20040929/localnews/1320997.html

The St. Louis-based managed-care company has reached an agreement to buy two health-plan providers in Kansas and Missouri. The deal will give Centene an additional 136,000 clients, boosting its total to nearly 700,000.

While there are no immediate plans to boost the number of jobs at the center being developed in Great Falls, the acquisition clearly signals the need for increased claims-processing capacity, said Lisa Wilson, a Centene spokeswoman.

The company quickly is outgrowing an existing claims operation in Farmington, Mo.

"You want to plan for your growth before you get there," Wilson said. "We need to have a second facility in order to process data and claims and perform other functions."

The company in August announced its intent to eventually employ 250 workers at the Great Falls center, with minimum pay levels of $10 per hour.

Centene contracts to provide managed-care services to individuals under Medicaid, Supplemental Security Income and Children’s Health Insurance Programs. It provides those services in Indiana, New Jersey, Ohio, Texas and Wisconsin.

The deal announced Tuesday marks Centene’s arrival in two additional states. The company will buy the additional providers, called First Guard Health Plans, from a company called Swope Community Enterprises.

Investors embraced the deal, expected to add to Centene’s earnings in 2005. Centene shares, which trade on the New York Stock Exchange, closed at $43.51, up $4.81 per share, or 12.43 percent, from Monday’s closing price of $38.70.

More than 586,000 Centene shares changed hands Tuesday, well above the average trading volume of about 117,000 shares.

Ian Davidson, the chairman of the Davidson Companies, said the growth and the company’s solid financial position are impressive.

"What’s pretty exciting is that we’ve got a real company that is showing real interest in Great Falls," Davidson said.

John Kramer, president of the Great Falls Development Authority, said he has heard of no changes in Centene’s hiring plans in Great Falls.

"The job numbers are the same," Kramer said, noting company officials have said growth plans would drive hiring in Montana.

The GFDA is working with Centene to develop plans for a building southwest of the Benefis Healthcare campus. While initial talk included a multi-building campus, the current focus is on a single multi-story building, Kramer said.

The development authority plans to secure financing from the Montana Board of Investments to construct the building and lease it to Centene.

A number of Centene officials are in Great Falls this week, reviewing resumes and doing interviews for the initial round of hiring of about 25 workers. To date, Job Service Workforce Center has received about 370 resumes. Plans call for hiring decisions to be made by October 15 and training to begin by Nov. 1.

The training will take place in space Centene has leased in the Strain Building at 400 Central Ave. The company plans to move to its permanent home in mid-2005.

Bob Schenk, a Centene spokesman, said those interested in working for the company should continue to apply at the Job Service. The climb to 250 jobs will be gradual.

"Not all those jobs are going to come online immediately," Schenk said. "We are real pleased with the number of resumes and also the quality of the pool of candidates in your community."

Larcombe can be reached by e-mail at [email protected], or by phone at (406) 791-1463 or (800) 438-6600.