St. Louis-based Centene Corp. said Tuesday it has completed the previously announced acquisition of Community Health Solutions of America Inc.’s Louisiana Medicaid contract to Centene subsidiary Louisiana Healthcare Connections Inc.
The deal, valued at $110 million to $140 million, includes an initial payment of $14 million in cash and $56 million worth of Centene stock.
Community Health is one of five private companies providing care to roughly 800,000 of the state’s 1.2 million Medicaid recipients. The deal also means Medicaid members enrolled by Community Health have the option of moving to one of the four remaining plans under the Bayou Health initiative. Bayou Health was designed to improve Medicaid enrollees’ health while controlling costs.
Centene is a Fortune 500 company that provides programs and services government-sponsored health care programs.