Fidelis Care has signed an agreement to sell substantially all of its assets to Centene Corporation (NYSE:CNC) for $3.75 billion, subject to certain adjustments.
Fidelis Care, a New York State insurance plan, offers mission driven high-quality health insurance coverage for children and adults of all ages and at all stages of life. Centene Corporation is a diversified, multi-national healthcare enterprise that provides a portfolio of services to government sponsored and commercial healthcare programs focusing on under-insured and uninsured individuals.
The transaction will result in the largest foundation focused solely on New York, which will be centered on the health and welfare of poor, low-income, elderly, disabled and underserved individuals and families throughout New York State.
A press release announcing the sale said it “will bring one of the most innovative and successful healthcare platforms to New York, resulting in enhanced and expanded resources and services for Fidelis Care members and providers.”
Centene will continue to operate the acquired business under the Fidelis Care name and brand throughout New York State. Both parties said they are committed to a seamless transition and continued delivery of service to Fidelis Care members.
Centene has agreed to maintain all of Fidelis Care’s commitments to its members, employees, and the communities it serves across all 62 counties of New York. Fidelis Care will maintain its corporate headquarters in its current Rego Park location. Centene will also continue to operate Fidelis Care’s regional and community offices and serve all 62 counties of New York State.
Centene also said it will provide continuity of employment to Fidelis Care’s approximately 4,000 employees.
Centene is one of the only national insurance companies that have expanded and entered new markets under the Affordable Care Act to ensure that recipients have access to the doctors and medical services they need.
“After conducting a comprehensive review process to best position Fidelis Care to achieve our mission, we are pleased to enter into this agreement with Centene,” said Father Patrick J. Frawley, a Brooklyn priest who serves as CEO of Fidelis Care.
“We believe that aligning with Centene will provide compelling benefits for our members, with greater tools and resources to promote better health outcomes and enhance care and disease management. We look forward to working together with Centene to advance our mission of promoting and ensuring access to quality, affordable health coverage for all.”
Begun in 1993 by the Bishops of New York State, Fidelis Care is governed by a board, together with the bishops of each diocese in the State of New York serving as members.