The latest financial statement by Centene revealed that the insurer ended the fourth quarter of 2020 with a $12 million loss. The company this week in investors’ call announced the reduction in workforce by 3,000
- Well Centene’s fourth-quarter revenues totaled $28.3 billion, up from $18.9 billion in the same period of 2019. Centene ended the quarter with a $12 million loss, compared to a $209 million profit in the final quarter of 2019. For the full year, Centene posted a profit of $1.8 billion, up year over year from $1.3 billion.
- The insurer attributed the increase to its acquisition of WellCare and growth in its Medicaid and ACA exchange businesses. Centene did see higher costs related to COVID-19 testing and treatment in the fourth quarter of 2020, particularly in its ACA exchange businesses, the insurer said.
- Centene is restructuring its organization, a change that will eliminate thousands of jobs, CEO Michael Neidorff told investors during a Feb. 9 call. The restructuring will reduce Centene’s workforce by 3,000 employees. The health insurer will also eliminate 1,500 open positions. In total, the changes will affect about 6 percent of Centene’s workforce.
- The job cuts will affect areas where Centene has “significant overlap” from acquisitions, as well as where there are “opportunities to leverage our size and scale for increased efficiency,” Mr. Neidorff said.