Managed health care company Magellan Health has been acquired by Centene Corporation, along with its subsidiary, Magellan Federal, for $2.2 billion.
As a result of the deal, Magellan will be added to the Health Care Enterprises, a cohort of organizations owned by Centene that operate independently. The deal was announced in January 2021 and completed by January 2022.
“Joining with Centene allows us to leverage the scale and strength of Centene, a Fortune 25 company, as we accelerate the introduction of innovative solutions that address the complex care challenges that our federal customers and participants face,” said Oscar Montes, Magellan Federal CEO.
Alongside Magellan, Centene hopes to be able to offer whole-health, integrated healthcare services that cut costs for high-need populations.
In addition, the partnership will focus on meeting behavioral and specialty health needs and crafting differentiated platform capabilities.
Montes was recently the subject of a GovCon Executive Who Cares feature at GovCon Wire. In the interview, Montes discussed Magellan Federal’s participation in the Hidden Helpers Coalition, which gives aid to children and teens who act as caregivers for their military parents.
He also described how the organization’s mission is to educate health care providers about the uniquely challenging experience military children have.
“Here at Magellan Federal, our job is to support behavioral health and resilience of military service members, veterans, civil servants, and their families. As such, the Hidden Helpers initiative directly aligns with our company’s ethos,” added Montes.
Joining forces with Centene will ensure the continuation of these and other outreach efforts by Magellan.