Centene to Appeal Kansas Cancellation

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00013128-centene-to-appeal-kansas-cancellation/

by Mike Bevel, CollectionIndustry.com

Centene Corp., which administers ? or, administered ? Kansas?s Meicaid services, has decided to rage, rage against the dying of their contract with the state of Kansas via appeal.

If the appeal fails, then it?s time for the big guns: a material, non-cash impairment charge.

Centene said in an Associated Press story that FirstGuard, which also operates in Missouri, accounted for $240 million of the company’s $1.51 billion in 2005 revenue. In the first half of 2006, the Kansas contract delivered $111 million to total revenue.

Centene announced the planned cancellation late Friday, sending its shares down 7.2 percent to $16.51.