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NeueHealth Acquires Full Ownership of Centrum Health

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NeueHealth (NYSE: NEUE) has announced the acquisition of the remaining 25% equity interest in Centrum Health, making it a wholly owned subsidiary. The transaction aims to simplify NeueHealth's corporate structure and streamline operations to support its value-driven, consumer-centric care model. According to CEO Mike Mikan, this move positions NeueHealth to create a more coordinated healthcare experience. Additional details about the transaction will be disclosed in an upcoming Form 8-K filing with the SEC.

NeueHealth (NYSE: NEUE) ha annunciato l'acquisizione del restante 25% di partecipazione in Centrum Health, rendendola una controllata al 100%. L'operazione mira a semplificare la struttura aziendale di NeueHealth e ottimizzare le operazioni per supportare il suo modello di assistenza incentrato sul valore e sul consumatore. Secondo il CEO Mike Mikan, questa mossa posiziona NeueHealth per creare un'esperienza sanitaria più coordinata. Ulteriori dettagli sull'operazione saranno divulgati in un prossimo deposito di Form 8-K presso la SEC.

NeueHealth (NYSE: NEUE) ha anunciado la adquisición del 25% restante de participación en Centrum Health, convirtiéndola en una subsidiaria de propiedad total. La transacción tiene como objetivo simplificar la estructura corporativa de NeueHealth y agilizar las operaciones para respaldar su modelo de atención centrado en el valor y en el consumidor. Según el CEO Mike Mikan, este movimiento posiciona a NeueHealth para crear una experiencia de atención médica más coordinada. Se revelarán más detalles sobre la transacción en un próximo archivo Form 8-K ante la SEC.

NeueHealth (NYSE: NEUE)는 Centrum Health의 남은 25% 지분을 인수한다고 발표하며, 이를 완전 자회사로 만들었습니다. 이 거래의 목적은 NeueHealth의 기업 구조를 단순화하고 운영을 간소화하여 가치 중심의 소비자 중심 치료 모델을 지원하는 것입니다. CEO Mike Mikan에 따르면, 이번 조치는 NeueHealth가 보다 통합된 의료 경험을 창출할 수 있도록 합니다. 거래에 대한 추가 세부 사항은 SEC에 제출될 예정인 Form 8-K에서 공개될 것입니다.

NeueHealth (NYSE: NEUE) a annoncé l'acquisition des 25% restants de participation dans Centrum Health, la rendant ainsi une filiale entièrement détenue. La transaction vise à simplifier la structure d'entreprise de NeueHealth et à rationaliser les opérations pour soutenir son modèle de soins axé sur la valeur et le consommateur. Selon le PDG Mike Mikan, ce mouvement positionne NeueHealth pour créer une expérience de soins de santé plus coordonnée. Des détails supplémentaires sur la transaction seront divulgués dans un prochain dépôt de formulaire 8-K auprès de la SEC.

NeueHealth (NYSE: NEUE) hat die Übernahme der verbleibenden 25% der Beteiligung an Centrum Health angekündigt, wodurch es zu einer hundertprozentigen Tochtergesellschaft wird. Die Transaktion zielt darauf ab, die Unternehmensstruktur von NeueHealth zu vereinfachen und die Abläufe zu optimieren, um ihr wertorientiertes, verbraucherzentriertes Pflege-Modell zu unterstützen. Laut CEO Mike Mikan positioniert sich NeueHealth dadurch, um ein besser koordiniertes Gesundheitsversorgungserlebnis zu schaffen. Weitere Einzelheiten zur Transaktion werden in einer bevorstehenden Form 8-K-Einreichung bei der SEC bekannt gegeben.

Positive
  • Complete ownership acquisition of Centrum Health subsidiary (remaining 25% stake)
  • Corporate structure simplification and operational streamlining
Negative
  • None.

Insights

The acquisition of the remaining 25% stake in Centrum Health marks a strategic consolidation move for NeueHealth. This vertical integration strengthens operational control and eliminates minority interest payments, potentially improving profit margins and operational efficiency. While financial terms aren't disclosed, this type of transaction typically aims to capture the full economic benefit of a performing asset and streamline decision-making processes.

For investors, this corporate restructuring could lead to enhanced earnings visibility and simplified financial reporting. The consolidation aligns with NeueHealth's strategy to build a more integrated healthcare delivery model, which could create value through reduced administrative overhead and improved care coordination. However, the undisclosed transaction value and terms make it challenging to quantify the immediate financial impact.

DORAL, Fla.--(BUSINESS WIRE)-- NeueHealth, Inc. (“NeueHealth” or the “Company”) (NYSE: NEUE), the value-driven healthcare company, today announced that Centrum Health, one of the Company’s value-driven clinic brands, became a wholly owned subsidiary through the Company’s acquisition of the remaining 25% equity interest of the business that it did not already own. This action simplifies NeueHealth’s corporate structure, streamlining operations to support its ongoing focus on advancing its value-driven, consumer-centric care model.

“We are pleased to announce this transaction as it further positions NeueHealth to take the lead in creating a more coordinated, seamless healthcare experience for all consumers,” said Mike Mikan, President and CEO of NeueHealth. “We look forward to continuing to drive value in healthcare for all as we look to build on our success in 2025 and beyond.”

More information regarding the key terms will be included in a Form 8-K to be filed by NeueHealth with the Securities and Exchange Commission.

About NeueHealth

NeueHealth is a value-driven healthcare company grounded in the belief that all health consumers are entitled to high-quality, coordinated care. By uniquely aligning the interests of health consumers, providers, and payors, NeueHealth helps to make healthcare accessible and affordable to all populations across the ACA Marketplace, Medicare, and Medicaid. NeueHealth delivers high-quality clinical care to over 500,000 health consumers through owned clinics and unique partnerships with over 3,000 affiliated providers. We also enable independent providers and medical groups to thrive in performance-based arrangements through a suite of technology and services scaled centrally and deployed locally. We believe our value-driven, consumer-centric care model can transform the healthcare experience and maximize value across the healthcare system. For more information, visit: www.neuehealth.com.

Forward-Looking Statements

Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “projections,” “outlook,” “ensure,” and other similar expressions. These forward-looking statements include any statements regarding our plans, expectations and financial guidance. Such forward-looking statements are subject to various risks, uncertainties and assumptions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Factors that might materially affect such forward-looking statements include: our ability to continue as a going concern; our ability to comply with the terms of our credit facilities­ or any credit facility into which we enter in the future; our ability to receive the remaining proceeds from the sale of our Medicare Advantage business in California in a timely manner; our ability to obtain any short or long term debt or equity financing needed to operate our business; our ability to quickly and efficiently complete the wind down of our remaining Individual and Family Plan (“IFP”) and MA businesses, including by satisfying liabilities of those businesses when due and payable; potential disruptions to our business due to corporate restructuring and any resulting headcount reduction; our ability to accurately estimate and effectively manage the costs relating to changes in our business offerings and models; a delay or inability to withdraw regulated capital from our subsidiaries; a lack of acceptance or slow adoption of our business model; our ability to retain existing consumers and expand consumer enrollment; our and our care partner’s abilities to obtain and accurately assess, code, and report risk adjustment factor scores; our ability to contract with care providers and arrange for the provision of quality care; our ability to obtain claims information timely and accurately; the impact of any pandemic or epidemic on our business and results of operations; the risks associated with our reliance on third-party providers to operate our business; the impact of modifications or changes to the U.S. health insurance markets; our ability to manage any growth of our business; our ability to operate, update or implement our technology platform and other information technology systems; our ability to retain key executives; our ability to successfully pursue acquisitions, integrate acquired businesses, and quickly and efficiently divest businesses as needed; the occurrence of severe weather events, catastrophic health events, natural or man-made disasters, and social and political conditions or civil unrest; our ability to prevent and contain data security incidents and the impact of data security incidents on our members, patients, employees and financial results; our ability to comply with requirements to maintain effective internal controls; our ability to adapt to mitigate risks associated with our ACO businesses, including any unanticipated market or regulatory developments; and the other factors set forth under the heading “Risk Factors” in the Company’s reports on Form 10-K, Form 10-Q, and Form 8-K (including all amendments to those reports) and our other filings with the SEC. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or changes in our expectations.

Investor Contact:

IR@neuehealth.com

Media Contact:

media@neuehealth.com

Source: NeueHealth

FAQ

What percentage of Centrum Health did NeueHealth acquire in 2024?

NeueHealth acquired the remaining 25% equity interest in Centrum Health, making it a wholly owned subsidiary.

Why did NeueHealth (NEUE) acquire full ownership of Centrum Health?

The acquisition aims to simplify NeueHealth's corporate structure and streamline operations to support its value-driven, consumer-centric care model.

Where will NeueHealth disclose the key terms of the Centrum Health acquisition?

The key terms of the acquisition will be disclosed in a Form 8-K to be filed by NeueHealth with the Securities and Exchange Commission.

NeueHealth, Inc.

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