Centene Corp. announced Tuesday that it will open a new claims processing facility in Ferguson, Missouri, creating 200 new jobs by the end of the year.
Leaders of the Clayton-based managed care company – which grosses $10.5 billion annually – said the unrest following Michael Brown’s death prompted Centene to select Ferguson for the expansion.
In an interview with The St. Louis American, Centene’s chairman and CEO Michael Neidorff said many of company’s employees are from Ferguson. The idea for the new facility came out of discussions among his management team.
“We’ve been talking and decided, ‘Why don’t we show the world that we have confidence in the citizens of Ferguson,’” he said.
The fast action was strongly backed by Centene’s nine-member board, which includes Neidorff, David Steward of World Wide Technology, Inc. and former U.S. Rep. Richard Gephardt.
“It was a five-minute decision,” Neidorff said. “The board was enthusiastic.”
He said Centene also had Ferguson’s small businesses in mind when pushing forward the plan.
“If Centene is willing to build a structure and facility, then there’s reason for those small businesses to hang in there,” he said.
U.S. Senator Claire McCaskill said the facility would be a “stabilizing lifeline” for the many small businesses affected by the unrest in Ferguson.
“I’m especially proud that Centene will begin hiring before the end of the year,” McCaskill said, “and that these jobs, after a year, will also be coupled with tuition reimbursement for higher education.”
On Friday, state Senator Maria Chappelle-Nadal (D-University City) met with Neidorff regarding Centene’s investment in Ferguson. From the onset of the conversation, she said it was clear that Centene wanted to target the jobs towards minorities living in Ferguson, especially young people.
“The board is one of the most diverse-thinking boards you can have,” she said. “Michael Neidorff is a leader in showing that Corporate America can engage in responsibility for the people who are hurting the most.”
Emerson Electronics – located less than a mile from Canfield Green Apartments where Brown was shot – already has innovative community programs, she said. Soon, Chapelle-Nadal hopes to have a conversation with leaders of Express Scripts, the pharmacy benefits manager with $100 billion in annual revenues located near Ferguson.
Brown’s death on Aug. 9 at the hands of Ferguson Police Officer Darren Wilson sparked protests and unrest and brought international attention to the city.
Protesters, activists and community leaders – including Chappelle-Nadal and Anthony Shahid – have called for new jobs to help revitalize the economy.
“After being at ground zero for so long, young people need this kind of hope and opportunity,” Chapelle-Nadal said. “These jobs will not only give individuals a second chance, but will also restore faith in the business community that surrounds Ferguson.”
Neidorff said their compensation package will be “competitive,” including tuition reimbursement, on-site childcare, as well as full medical, dental and vision benefits to employees.
In her conversations with Neidorff, Chapelle-Nadal said they discussed that the company is willing to look past some of the applicants’ “bumps in the road” and focus on their skill sets.
“There are a lot of young people who are intelligent but because they have been harassed by police, they aren’t given a fair shot,” she said.
After a year of working with the company, employees have the opportunity to have their college tuition fully reimbursed.
“That’s quality,” she said. “You are giving these kids another chance.”
These will be “processing jobs,” Neidorff said, and employees will go through extensive training on their computer systems. The new center will process claims from its Missouri-based State Health Plan, in addition to overflow from its contracts in other states.
The company is pursuing an aggressive timeline to open the center by 2015 and will begin taking applications before the end of this year.
Missouri Gov. Jay Nixon said his administration is partnering with St. Louis Community College to provide targeted job training resources through the Missouri Works Training program.
“Centene’s decision to build a new facility in Ferguson is a great example of how our Missouri Works Training program is growing our economy by investing in the skills of our workforce,” Nixon said in a statement.
When asked if Neidorff had spoken to other corporate leaders about their efforts in Ferguson, he said, “No, these are personal decisions.”
Asked if he feels St. Louis-based corporations have a responsibility to offer solutions to the unrest, he said, “I can’t speak for others. Everyone has a responsibility to work within the community to make it better. It’s important to be engaged and to provide leadership. When hope is gone, that’s not a good situation.”
