Centene has increased its investment in Ribera Salud Group in Spain as the U.S. health insurer expands its international healthcare business.
Centene said it now owns 90% of Ribera Salud, which provides “private management of government-sponsored healthcare in Spain and Slovakia,” the company’s website says. Centene, which purchased the stake from Banco Sabadell for an undisclosed amount, said the deal increases its investment from 50%.
“We are pleased to grow our stake in Ribera Salud and to further demonstrate our commitment to developing our international portfolio,” Centene Chairman and CEO said Michael Neidorff said. “With this transaction, Centene is positioned to expand our innovative solutions internationally through cutting-edge technology, value creation and positive outcomes for our customers.”
Centene also has investments in the United Kingdom and late last year purchased a stake in University Hospital of Torrejón in Madrid. Centene joins rivals like UnitedHealth Group and its Optum unit as well as Cigna that are increasingly looking outside the U.S. at established and emerging markets for growth possibilities.
Centene’s U.S. business has grown rapidly thanks to the Affordable Care Act and its subsidized individual coverage and the expansion of Medicaid benefits for poor Americans.
Centene is poised to become a national player in the U.S. with its proposed acquisition of WellCare Health Plans for more than $15 billion. That deal is currently wending its way through state and U.S. regulatory approvals and Centene said last month executives expect the deal to close in the first half of 2020.
Date: July 04, 2019