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Centene has announced it is buying Community Medical Group in Florida, a physician group serving over 70,000 Medicaid, Medicare Advantage and Affordable Care Act consumers in the Miami-Dade area.
The acquisition, for an undisclosed amount, combines similar provider and payer strategies for at-risk arrangements in the Medicaid, Medicare Advantage and ACA markets.
In the purchase, Centene joins the ranks of other insurers which have been buying up physician practices as a way to strengthen their growing Medicare Advantage markets. These deals include the acquisition late last year of DaVita Medical Group by UnitedHealth Group's Optum for $4.9 billion.
The addition of the Community Medical Group will increase Centene's scale and capabilities and add a Medicaid-focused provider to the insurer's existing in-home primary care business, Centene said. CMG has already demonstrated the ability to generate medical cost savings.
"The addition of CMG will provide Centene with a differentiated care delivery asset that shares our focus and commitment to government-sponsored programs and creates a foundation for future growth," said Centene CEO Michael Neidorff. "CMG's clinical care model, encompassing primary care, access to certain specialty services and a suite of social and other support services is clearly aligned with Centene's purpose of transforming the health of the community."
CMG CEO Luis Izquierdo added that it already partners with Centene and other health plans to provide primary and specialty care to members in the South Florida region.
"Benefiting from Centene's scale, we look forward to expanding our geographic footprint while continuously improving outcomes and increasing value by incrementally deploying primary care and social services to the members who need them most," Izquierdo added.
The deal is expected to close during the first quarter.