Becker Private Equity & Business Podcast - Episode Summary

Title: Centene Gets Crushed Again
Host: Scott Becker
Release Date: July 25, 2025

Introduction

In this episode of the Becker Private Equity & Business Podcast, host Scott Becker delves into the recent troubling developments surrounding Centene Corporation, a major player in the Medicaid managed care sector. Titled "Centene Gets Crushed Again," the episode provides an in-depth analysis of Centene's financial performance and its implications within the broader managed care industry.

Centene's Recent Financial Performance

Scott opens the discussion by highlighting Centene's disappointing financial results for the second quarter:

• Earnings Report: Centene reported "horrendous earnings for the second quarter" (00:10).
• Stock Performance: The company's stock experienced a significant drop of 9% following the earnings report (00:12).
• Year-to-Date Decline: Centene's stock is down 55% year-to-date and has plummeted 60% over the last 52 weeks (00:15).

"They're now down, I think 55% year to date. They're down 60% over the last 52 weeks." — Scott Becker [00:15]

Factors Contributing to Centene's Decline

Scott explores the reasons behind Centene's deteriorating performance:

• Market Leadership: Centene was previously the "absolute leader in growing Medicaid managed care plans" (00:20).
• Revenue Figures: Despite the downturn, Centene still reported impressive quarterly revenues of nearly $49 billion (00:25).
• Industry Challenges: The managed care sector is currently facing widespread difficulties, with all major companies projecting "much bigger rate increases for next year" (00:35).

"What’s happened? This company was the absolute leader in growing Medicaid managed care plans and now it is just getting absolutely crushed as it moves forward." — Scott Becker [00:20]

Comparative Analysis with Other Major Payers

Scott places Centene's struggles within the context of the larger managed care industry:

• Major Players: Centene is compared with other leading payers, including UnitedHealth Group, CVS Health, Cigna, and Elevance (00:30).
• Revenue Rankings: These companies are among the largest in the United States by revenue, underscoring the competitive and challenging environment they operate in (00:30).

"Remember, four of the largest payers are for the biggest companies in the United States by revenues. That's United CVS, Cigna, and Elevance." — Scott Becker [00:30]

Outlook for the Managed Care Sector

The podcast concludes with a look ahead at the managed care industry's prospects:

• Rate Increases: There is an expectation of "much bigger rate increases for next year," indicating potential financial strain for both companies and consumers (00:40).
• Centene's Position: Despite the overall industry challenges, Centene's situation appears particularly dire as it continues to face significant setbacks (00:45).

"But, but again, Centene gets absolutely crushed and continues to get crushed." — Scott Becker [00:45]

Conclusion

Scott Becker wraps up the episode by reiterating the gravity of Centene's current predicament within the managed care sector. Despite being a major company with substantial revenues, Centene's steep decline in stock performance and earnings signals deeper issues within the company and the broader industry landscape.

"Thank you for listening to the Becker Private Equity and the Becker Business Podcast. Thank you, very, very much." — Scott Becker [00:50]

Key Takeaways

• Centene's Financial Struggles: Significant declines in stock price and earnings highlight serious challenges.
• Industry-Wide Issues: The managed care sector is under pressure, with anticipated rate increases adding to the strain.
• Competitive Landscape: Centene's difficulties are set against a backdrop of competition from other large healthcare payers.
• Future Outlook: Both Centene and the broader sector face uncertain prospects moving forward.

This episode provides valuable insights into the current state of Centene and the managed care industry, making it essential listening for stakeholders in private equity and healthcare sectors.