Evolent Health Inc (NYSE: EVH) dipped by a huge margin in Wednesday’s trading session. The stock dropped by 27.34% to close the day at $7.76. This followed the company’s announcement that its partner Passport Health Plan had not been given a Kentucky Managed Medicaid contract. The contract was made public by the government and the company awarded will start on the 1st of July 2020.
Nonetheless, Passport Health Plan has announced that it will appeal the decision. Evolent Health Inc has also announced that it supports its partner’s decision to appeal. While commenting on this issue, Evolent CEO, Frank Williams stated that, they believe the decision taken by the Kentucky administration would negatively affect the health and general wellbeing of the residents of Kentucky.
Passport Health Plan has been providing Medicaid to the people of Kentucky for the last 2 decades, and is already established as an outstanding provider of quality care to the people of Kentucky. Evolent Health has been working with Passport Health since 2016. Under the partnership, Evolent offers care management and clinical programs to more than 300k of Passport Health 300k plus members.
While the partnership started in 2016, it has only got entrenched this year. It is in 2019 that Evolent moved to buy 70% of Passport Health. The purchase was in partnership with a number of other organizations including the University of Louisville. Despite Passport Plan not getting awarded the contract, Evolent will still provide Medicaid services to Kentucky residents up to the end of June in 2020.
Looking at the charts, Evolent was in a bearish reversal in Wednesday’s session. The 27% drop in value reversed all the gains that the stock had made in the week. Volumes were quite high too, and stood at 15.26 million in the day.
About Evolent Health Inc
Evolent Health Inc provides health care and payment solutions across the U.S. The company has its headquarters in Arlington, Virginia.