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Centene Unit Collaborates With RxAdvance for New PBM Platform

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Centene Corporation (CNC - Free Report) recently announced the implementation of a transformative pharmacy benefit management model through RxAdvance's Collaborative PBM Cloud platform by its Mississippi arm, Magnolia Health. This service is available to 240,000 Mississippi Medicaid members. The collaboration is expected to reduce overall administrative costs and contribute to the betterment of health outcomes by decreasing medical costs.

Earlier this year, the company also informed about a tie-up with RxAdvance, aiming to create an advanced pharmacy management solution. Magnolia Health is the company’s first unit that has successfully implemented this model. With the amalgamation of this Pharmacy Solutions business, RxAdvance's unique platform and a new business model, this new solution is likely to be a game-changer. The parent company is also anticipated to provide a value-based care to its members at affordable costs with this transparent Pharmacy Benefit Management model.

The company has been constantly making endeavors to enhance the experience of its members at a low cost. Apart from collaborations, Centene is also actively taking up mergers and acquisitions for the past many quarters for expanding its markets and increasing its Medicaid membership. In March 2016, the company acquired Health Net, which has substantially been accretive to the company’s top line.

This year, Centene bought Community Medical Holdings, MHM Services and Fidelis Care. In July 2018, the company entered into a joint venture with Ascension to establish a Medicare Advantage plan, which will be operational across multiple geographic markets beginning 2020. These acquisitions and partnership should bolster the company’s operations and aid long-term growth.

Shares of this Zacks Rank #3 (Hold) have rallied 15.5% in a year’s time, outperforming its industry’s growth of 11.6%.

Stocks to Consider

Investors interested in the Medical-HMO industry can check out some better-ranked stocks like Molina Healthcare, Inc (MOH - Free Report) , Humana Inc (HUM - Free Report) and Anthem, Inc. .

Molina offers Medicaid-related solutions to meet the health care needs of low-income families and individuals. It sports a Zacks Rank #1 (Strong Buy). In the last four reported quarters, the company delivered average four-quarter beat of 82.55%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Humana operates as a health and well-being company in the United States. It carries a Zacks Rank #2 (Buy) and came up with average four-quarter earnings surprise of 4.73%.

Anthem operates as a health benefits company in the United States. A Zacks #2 Ranked player, the company managed to pull off average trailing four-quarter positive surprise of 5.11%.

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