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Centene Corporation, a key player in the healthcare sector linked to America’s second-richest Black billionaire David Steward, has reported a remarkable financial performance for the first nine months of its 2023 fiscal year.
The publicly traded managed care company disclosed profits of $2.66 billion, driven by a surge in membership in Obamacare plans.
According to the financial statements released by Centene, the company’s profits skyrocketed from $1.41 billion in the same period in 2022 to an impressive $2.66 billion during the first nine months of its 2023 fiscal year.
This substantial growth can be attributed to a combination of effective cost-optimization strategies and a substantial increase in revenue, which rose from $109 billion to $114.54 billion during the period under review.
One of the key drivers of Centene’s success has been growth in its membership base
In the first nine months of 2023, Centene’s enrollment in individual coverage under the Affordable Care Act, commonly known as Obamacare, expanded the company’s “commercial marketplace” business to 3.6 million members, a significant increase from the 2.1 million members it had a year ago. This marks a remarkable addition of 1.5 million members to their Obamacare plans.
The company’s managed care membership increased to 27.96 million during this period, up from 26.76 million at the end of the third quarter in 2022.
This growth has had a positive impact on Centene’s financials, with “premium and service revenues” rising from $101.9 billion in the same period a year ago to $104.76 billion during the first nine months of its 2023 fiscal year.
What Centene’s CEO is saying
Centene CEO Sarah M. London expressed her satisfaction with the company’s financial results, saying, “Our strong third-quarter results demonstrate the positive momentum Centene is generating as we prepare for 2024.”
“Marketplace growth, effective navigation of redeterminations year-to-date, and successful execution against value creation initiatives together position us well to continue advancing our strategic priorities. We are increasing our full-year 2023 adjusted diluted EPS guidance, reflecting year-over-year growth of more than 14 percent,” she added.
David Steward’s investment in Centene is presently worth $15.3 million
Centene Corporation, recognized as a Fortune 500 company, operates as a healthcare leader with a strong focus on enhancing lives through improved health. The company adopts a unique local approach, driven by regional teams and brands, extending its influence across a broad spectrum of specialized services to promote holistic well-being.
Steward, the second-richest Black billionaire in the United States with a net worth of $8.1 billion, maintains a significant investment in Centene Corporation, presently valued at $15.3 million, further diversifying his investment portfolio.
Centene’s reach and success in the healthcare industry are underlined by its strategic collaborations with various healthcare and commercial organizations, offering a comprehensive range of specialized services geared toward promoting overall well-being.
