SACRAMENTO - Health Net, a subsidiary of Centene Corporation (NYSE: NYSE:CNC), has become the only health plan in the United States to receive the Health Equity Accreditation Plus (HEA+) across all its lines of business, including Medicaid, Medicare, Commercial, and Exchange. The National Committee for Quality Assurance (NCQA) awarded the certification, recognizing Health Net's commitment to addressing health equity and serving diverse populations.
The company's efforts in establishing partnerships with community-based organizations, enhancing patient engagement, and improving social need referral processes have been integral to achieving this accreditation. Health Net's recent initiatives include a $2 million investment in 47 California independent physician practices and a multi-million-dollar commitment to address homelessness in Los Angeles County. These actions aim to strengthen healthcare delivery systems and tackle social determinants of health.
Health Net's provision of no-cost mental telehealth services for eligible California schoolchildren and free online caregiver support programs are examples of their approach to foster patient engagement and support. Collaborations like the one with California's Black Birth Justice Coalition, which focuses on reducing infant mortality rates with culturally centered care, demonstrate the company's dedication to improving health outcomes and addressing social needs in marginalized communities.
Health Net, with a history spanning over 45 years in California, provides health plans to individuals, families, businesses, and those eligible for Medi-Cal or Medicare. With over 90,000 network providers, Health Net serves more than three million members across the state. The company's comprehensive services include substance abuse programs, behavioral health services, employee assistance programs, and managed healthcare products related to prescription drugs.
This acknowledgment by NCQA marks another milestone for Health Net, which has previously received the "Multicultural Health Care Distinction" award and the Health Equity Accreditation Plus designation for all lines of business in 2022. The company's ongoing commitment to health equity is reflected in its strategic initiatives and partnerships aimed at closing health equity gaps statewide.
The information for this article is based on a press release statement.
In other recent news, Centene Corporation has reported a significant rise in its Medicare Advantage star ratings, with nearly half of its members now in plans rated 3.5 stars or higher. This development aligns with the company's internal projections and reflects its efforts to enhance the quality of care and services provided to its members. In earnings news, Centene reported strong second-quarter results, with an adjusted diluted earnings per share (EPS) of $2.42, a 15% increase from the previous year. The company has also raised its full-year premium and service revenue expectations to between $141 billion and $143 billion.
Centene's board member Lori J. Robinson has decided not to seek re-election at the company's 2025 Annual Meeting, and the company expanded its Board of Directors with the appointment of Thomas R. Greco, a seasoned leader with over 40 years of experience in public companies. Additionally, Centene's subsidiary, Health Net Community Solutions, has been awarded a contract to provide managed dental health care services to Medi-Cal beneficiaries in Los Angeles and Sacramento counties.
On the analyst front, Jefferies maintained a Hold rating on Centene but lowered its price target to $72.00. Meanwhile, Wells Fargo and TD Cowen upgraded their price targets for Centene to $93.00 and $89.00 respectively. These are recent developments that investors should take note of.
InvestingPro Insights
Centene Corporation (NYSE: CNC), Health Net's parent company, demonstrates a strong financial position that aligns with its subsidiary's focus on health equity and market leadership. According to InvestingPro data, Centene boasts a substantial market capitalization of $36.45 billion, reflecting its significant presence in the healthcare sector. The company's revenue stands at an impressive $144.06 billion for the last twelve months as of Q2 2023, with a 4.32% growth rate, indicating robust operational performance.
InvestingPro Tips highlight Centene's financial strategy and market position. The company has been "aggressively buying back shares," which often signals management's confidence in the company's future prospects. This aligns with Health Net's innovative initiatives and investments in community health programs. Additionally, Centene is noted as a "prominent player in the Healthcare Providers & Services industry," reinforcing Health Net's leading position in receiving the Health Equity Accreditation Plus across all business lines.
Another relevant InvestingPro Tip points out that Centene is "trading at a low revenue valuation multiple." This could suggest that the market has not fully priced in the potential value of initiatives like Health Net's equity-focused programs and community investments. As these efforts potentially lead to improved health outcomes and customer retention, they may contribute to long-term value creation for Centene.
For investors interested in a deeper analysis of Centene Corporation, InvestingPro offers 11 additional tips, providing a comprehensive view of the company's financial health and market position.
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