Centene's 24% revenue growth in Q1: 11 things to know

Centene pulled in over $37 billion in revenue in the first quarter and added nearly 2 million members, according to the company's earnings report released April 26.

"Our strong first quarter performance demonstrates Centene's ability to deliver on our financial goals while continuing to make progress against our Value Creation initiatives," CEO Sarah London said. "As we look ahead, consistency of results and operational excellence will remain top priorities for this management team as we drive towards sustainable and profitable long-term growth."

Eleven key takeaways:

  • In the first quarter of 2022, total revenues increased 24 percent to $37.2 billion from $30 billion year over year. 
    • The increase was due to organic Medicaid growth, 28 percent membership growth in the Medicare business, recent acquisitions of Magellan Health and Circle Health, the commencement of contracts in North Carolina, and $1.9 billion of additional premium tax revenue and retroactive state directed payments.
  • Total 2022 revenue outlook ranges from $140 billion to $142 billion.
  • Premium and service revenues totaled $34.2 billion for the first quarter of 2022, representing 22 percent growth compared to the first quarter of 2021.
  • Net earnings in the first quarter of 2022 were $849 million, compared to $699 million in 2021.
  • In April 2022, former Chair and CEO Michael Neidorff died. Mr. Neidorff led Centene for more than 25 years. Sarah London was appointed CEO in March 2022 after Mr. Neidorff took a leave of absence.
  • Managed care membership totaled 26.2 million as of March 31, an increase of 1.9 million members, or 8 percent, compared to the year prior.
    • Traditional and high-acuity Medicaid in 2022 was 15.3 million, up from 13.8 million in 2021.
    • Commercial in 2022 was 2.5 million, up from nearly 2.4 million in 2021.
    • Medicare in 2022 was 1.5 million, up from 1.1 million in 2021.
  • Centene had 80,100 employees at the end of the first quarter, up from 72,500 employees at the end of the fourth quarter of 2021.

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