The New York State Office of the Attorney General has asked the public to comment on the sale of New York State Catholic Health Plan Inc., which does business as Fidelis Care New York.
Centene Corp. has agreed to buy substantially all of the assets of Fidelis Care for $3.75 billion. An endowment will be created for the new Mother Cabrini Health Foundation using most of the proceeds from the sale. Approximately $1.4 billion will go to the state.
Under the Not-for-Profit Corporation Law, the proceeds of the sale of charitable assets belong to the charity and must further its charitable mission, the office said in a news release. The office is reviewing the transaction to determine whether the price and terms are fair and reasonable.
Centene has pledged to continue providing services and enrolling members in all areas where Fidelis Care operates, preserve the current network of providers and ensure that they get paid the same rate for at least three years and hire an independent healthcare expert chosen by the office.
