Centene (CNC) Confirms Contract for Buckeye Community Health Plan Subsidiary Was Not Renewed in Ohio
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In a Form 8-K Monday afternoon, Centene (NYSE: CNC) announced it was notified by the Ohio Department of Job and Family Services that Buckeye Community Health Plan, Centene's Ohio subsidiary, was one of four incumbent health plans that was not awarded a contract to continue serving Medicaid members in Ohio, effective January 2013. Centene intends to file a formal protest within the required seven-day notice period.
This announcement is not expected to impact 2012 Premium and Service revenues from Buckeye Community Health Plan. However, as result of this event, Centene will conduct a test for recoverability of the assets of Buckeye Community Health Plan including goodwill and intangible assets and expects that, absent a successful appeal, a material non-cash impairment charge will be recorded in its 2012 consolidated statement of operations for the year ended December 31, 2012. As of December 31, 2011, Buckeye Community Health Plan had goodwill and net intangible assets of approximately $42.9 million.
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This announcement is not expected to impact 2012 Premium and Service revenues from Buckeye Community Health Plan. However, as result of this event, Centene will conduct a test for recoverability of the assets of Buckeye Community Health Plan including goodwill and intangible assets and expects that, absent a successful appeal, a material non-cash impairment charge will be recorded in its 2012 consolidated statement of operations for the year ended December 31, 2012. As of December 31, 2011, Buckeye Community Health Plan had goodwill and net intangible assets of approximately $42.9 million.
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