Why Centene is selling off non-core businesses

Since taking over the role in March 2022, Centene CEO Sarah London has overseen the divestiture of several non-core businesses. 

Ms. London told Fortune June 9 that the businesses that have been sold were keeping Centene from "really focusing and being as efficient as we could." 

She told the outlet that keeping up with the industry race to buy physician practices and build a broad, integrated healthcare company didn't make sense for Centene. 

"When I first started at Centene I was sitting over all those other businesses," Ms. London told the outlet. "Each one of those is a totally different business model — running a technology business, running a provider organization, and running a payer."

Ms. London said Centene's current size provides stability and allows it to partner with provider groups, pharmacy benefit managers and other organizations on favorable terms, according to the report. 

Most recently, Centene signed a definitive agreement in May to sell artificial intelligence platform Apixio to the private equity firm New Mountain Capital. 

Other divestitures include:

  • Selling Magellan Specialty Health to healthcare administration company Evolent Health, which was completed in January.
  • Selling pharmaceutical benefit manager MagellanRx to Prime Therapeutics, which was completed in December. 

Selling its Spanish and central European businesses to French private hospital group Vivalto Santé, which was completed in November.

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