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Friday, Nov 22, 2024

Regulators Conditionally Approve Health Net Acquisition

Two state regulatory agencies conditionally approved Centene Corp.’s acquisition of Health Net Inc., the agencies announced Tuesday. One of the conditions required by the Department of Managed Health Care is that Health Net keep its headquarters in California. The company is currently headquartered in Woodland Hills. Also, the combined company, to be called Centene, must build a service center in an economically distressed area of California employing at least 300 people. The company must invest at least $200 million in the project. In addition, the company must spend $140 million to improve health outcomes for underserved communities in the state. In a separate statement, Insurance Commissioner Dave Jones approved the deal with conditions that include Health Net maintain its insurance lines and that no merger costs are passed onto California consumers. Health Net and Centene in St. Louis announced the merger last July. Health Net shares closed up $2.15 or 3.4 percent to $64.81 on the New York Stock Exchange.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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