Diamond Hill Capital Management, LLC - Small-Mid Cap Strategy on Centene
Thesis
Diamond Hill initiated a position in Centene as a managed care recovery idea. The manager believes reimbursement rates have a realistic path to catch up with underlying cost trends. This could allow managed care margins to recover over the next few years.
“managed care margins now have a realistic path to recovery over the next few years”
Key risks
- Reimbursement rates may not catch up with underlying cost trends