Centene Corporation (CNC - Free Report) recently announced that its subsidiary, Centurion of New Hampshire, LLC has been re-approved a contract for continuing the provision of medical and dental professionals to the New Hampshire Department of Corrections.
Granted by the New Hampshire Department of Corrections, the contract is expected to start on Jul 1, 2018 with a base term of four years and two more optional years for renewal.
This contract was originally held by MHM Services. Per the contract, New Hampshire state prison facilities would be provided with medical and dental staff by Centurion. It operates three state prison facilities, three transitional housing units and a forensic unit along with a psychiatric unit consisting of an average daily population of around 2,500 inmates.
By dint of the contract, New Hampshire is entitled to receive quality and cost-effective healthcare services. Since 2013, Centene as a diversified multi-national healthcare company has been providing efficient medical care to low income group individuals through its subsidiary, NH Healthy Families.
Last month, the company announced that another part of Centurion, Centurion Detention Health Services, LLC, was awarded a contract for providing comprehensive healthcare services to the detainees of the County's adult and juvenile detention facilities in Tucson, AZ. The Pima County Arizona Board of Supervisors unanimously voted in favor of this.
The contract is expected to be effective Jul 1, 2018. With this, a team of 108 full-time professionals would be providing a wide array of medical, dental and behavioral health services to the facility’s daily population of around 1900 detainees. The company’s Washington subsidiary, Coordinated Care, has also been permitted to provide managed care services to Apple Health's Integrated Managed Care (IMC) Medicaid beneficiaries. This selection was done by the Washington State Health Care Authority.
These contracts are likely to increase membership strength, which should aid the company’s revenues in turn.
In the past year, shares of this Zacks Rank #3 (Hold) have soared 57.77%, outperforming its industry’s growth of 33.56%.
Stocks to Consider
Investors interested in the Medical-HMO sector may consider a few better-ranked stocks, namely WellCare Health Plans, Inc. (WCG - Free Report) , Anthem, Inc. (ANTM - Free Report) and UnitedHealth Group Incorporated (UNH - Free Report) .
WellCare provides managed care services for government-sponsored health care programs. The company currently sports a Zacks Rank #1 (Strong Buy). It managed to come up with an average positive surprise of 51.70%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Anthem works as a health benefits company in the United States. It carries a Zacks Rank #2 (Buy) and pulled off an average four-quarter positive earnings surprise of 7.22%.
UnitedHealth is a diversified health care company in the United States. This Zacks #2 Ranked player managed to deliver an average four-quarter beat of 3.64%.
(We are reissuing this article to correct a mistake. The original article, issued on Jun 13, 2018, should no longer be relied upon.)