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Centene Extends SilverSummit's Presence to the Edges of Nevada

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Centene Corporation (CNC - Free Report) recently announced that its subsidiary, SilverSummit Healthplan, has received a crucial contract with the Nevada Department of Health and Human Services.  This will be a five-year contract with a possible two-year extension starting from Jan. 1, 2026 and mark a significant expansion of Medicaid managed care to the state’s rural and frontier areas, regions that had historically been covered under the fee-for-service system.

This contract strengthens Centene’s position in the government-sponsored healthcare market. Silversummit has been serving Nevada’s Medicaid population since 2017 and currently supports more than 100,000 members. It is now set to provide integrated healthcare services to an even wider range of people, which will include primary care, behavioral health, pharmacy services and telehealth. These are the key elements that are crucial for enhancing health outcomes in underserved areas.

The expansion will establish SilverSummit as a key player in the state’s healthcare scene, focusing on tailored solutions and a broader network of providers. As rural healthcare access is a significant challenge across the country, this initiative might become a blueprint for other states to follow.

Moreover, SilverSummit’s marketplace arm, Ambetter, was among the few selected for Nevada’s Battle Born State Plan, a new public option within the health insurance marketplace that offers a mobile app for managing healthcare benefits. This contract is expected to provide coverage for around 16,000 individuals in its inaugural year.

This initiative also aligns with Centene’s mission to deliver person-centered care. The Nevada Medicaid contract not only strengthens SilverSummit Healthplan’s role in the community but also highlights a significant trend in the industry toward value-based, community-centered healthcare.

CNC Stock Price Performance

Year to date, CNC  shares have risen 3%, underperforming the industry’s surge of 16.9%. 

Zacks Investment Research
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CNC’s Zacks Rank & Key Picks

CNC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Aveanna Healthcare Holdings Inc. (AVAH - Free Report) , Universal Health Services, Inc. (UHS - Free Report) and Option Care Health, Inc. (OPCH - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aveanna Healthcare’s current-year earnings of $0.12 per share has witnessed six upward revisions in the past 30 days against none in the opposite direction. Aveanna Healthcare beat earnings estimates in each of the trailing four quarters, with the average surprise being 163.3%. The consensus estimate for current-year revenues is pegged at $2.1 billion, implying 4.6% year-over-year growth.

The Zacks Consensus Estimate for Universal Health Services’ current-year earnings of $18.94 per share has witnessed three upward revisions in the past 30 days against no movement in the opposite direction. Universal Health Services beat earnings estimates in three of the trailing four quarters, with the average surprise being 15.5%. The consensus estimate for current-year revenues is pegged at $17.1 billion, implying 8.1% year-over-year growth.

The Zacks Consensus Estimate for Option Care Health’s current-year earnings of $1.68 per share has witnessed six upward revisions in the past 60 days against no movement in the opposite direction. Option Care Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 15.9%. The consensus estimate for current-year revenues is pegged at $5.4 billion, calling for 8.9% year-over-year growth.


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