SWOT Analysis of Centene Corporation (CNC)
Centene Corporation (Centene) is one of the leading multi-line healthcare enterprises founded in 1984 in the US. The company provides programs and related services to individuals through Medicaid including the Children’s Health Insurance Program (CHIP), Aged, Blind, or Disabled (ABD), Long-Term Care, Special Needs Plans with Foster Care. It also provides specialty services such as behavioral health, managed vision. They also introduced life and health management, pharmacy benefits management, tele health services and medication adherence through contracts with other healthcare and commercial institutions. Its headquarter is at Saint Louis, Missouri.
Centene has a wide portfolio of services including govt. healthcare services, individual plans and etc., which gives it a competitive edge upon other health care service providers. Centene’s core strength is that it focuses providing healthcare services locally. It uses local staffs to deliver their integrated program which is an effective approach. This approach also creates jobs locally and thus providing sustainable growth to both company and society. Centene also has contracts with other health related service providers, to provide healthcare services to uninsured Americans which includes behaviorist health, life and health management. Pharmacy benefits management and medication services are also part of Ceneten’s developing core strength. Centene offers unique, cost-effective coverage solutions for low-income populations through locally based health plans and a wide range of specialty services.
Cenetene share price has seen a decrease in last few months due to tough competitions and other market giants. Centene Corporation is not focusing on a single niche or for a focussed tailor made services as its competitors are doing Eg. US Oncology focusing on Cancer patients. Another weakness which is observed for centene is cross cultural working systems because centene prefers to higher locals for providing services and sometime they observe a cultural mis-match.
There is an inherent threat in a medical and healthcare services industry. This sector is highly regulated and it can be observed in future for more regulations and penalties. Centene planned to leave the Kentucky market next summer because it couldn’t resolve differences with the state over high-cost problems that have increased troubles for the business in recent months. Increasing inflations and high cost of medical equipment’s is another alarming situation Centene had previously lowered its full-year guidance and posted loss in this year’s second quarter, due to high costs in Kentucky and Texas and in an individual health-care business.
Overall Centene Corporation has maintained its corporate image and is upon right track regarding growth, but it may seem to be victim of penalty or fine due to cancellation of Kentucky healthcare contract. Centene can also expand its services in more states as ait has a model which can incorporate people from different mind sets and culture.