Centene To Acquire MHM Services

By a News Reporter-Staff News Editor at Investment Weekly News -- Centene Corporation (NYSE: CNC) announced that it has signed a definitive agreement to acquire MHM Services, Inc. ("MHM") a national provider of healthcare and staffing services to correctional systems and other government agencies. Under the terms of the agreement, Centene will acquire 100 percent of the stock of MHM, including its 49 percent ownership of Centurion, the correctional healthcare services joint venture between Centene and MHM.

MHM provides behavioral health, medical and dental services to governmental agencies in a variety of patient care settings, including correctional facilities, state hospitals, courts, juvenile facilities and community clinics. The business currently serves over 330,000 individuals in over 300 facilities across the United States.

"The addition of MHM will provide Centene with significant scale in the correctional healthcare services market," said Michael F. Neidorff, Chairman and CEO of Centene. "For the past six years, Centene and MHM have successfully worked together to build Centurion, which now provides comprehensive, cost-efficient clinical programs for correctional systems in seven states."

"We are proud to continue our partnership with Centene, which shares our mission of providing better health outcomes at lower costs for the states," said Steven Wheeler, President of MHM and CEO of Centurion. "With a $10 billion annual cost of correctional healthcare in the U.S. and 23 states currently outsourcing these services to private vendors, together we are positioned to create value for all of our stakeholders."

Strategic Benefits of the Transaction

Expands national footprint - MHM adds two new states to Centene's portfolio and expands Centurion's existing seven state correctional footprint to 14 states, giving the combined company a larger platform to pursue additional opportunities.

Provides additional clinical capabilities - MHM has extensive experience providing physical and behavioral health services for government programs and enhances a platform for innovative care delivery models.

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