Molina Healthcare to Acquire Medicaid Assets of Preferred Medical Plan
July 14 2015 - 4:05PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Preferred Medical Plan,
Inc. (Preferred) today jointly announced that Molina Healthcare of
Florida, Inc., a wholly owned subsidiary of Molina Healthcare,
Inc., has entered into a definitive agreement to acquire certain
assets of Preferred’s Medicaid business in Florida.
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As a part of the transaction, Molina Healthcare of Florida will
assume Preferred’s Medicaid contract in Miami-Dade and Monroe
Counties, as well as acquire certain assets related to the
operation of its Medicaid business. The acquisition will complement
Molina Healthcare’s existing business in those counties. Molina
Healthcare of Florida will fund the transaction with available cash
on hand at the parent company. Subject to regulatory approvals and
the satisfaction of other closing conditions, the closing of the
transaction is expected to occur during the third quarter of 2015.
Wells Fargo Securities served as the exclusive financial advisor to
Preferred Medical Plan.
Since 1975, Preferred has provided comprehensive health care
products in South Florida and currently serves approximately 25,000
Medicaid members.
“We are committed to providing continuity of care to our new
members in South Florida and we will work closely with Preferred
Medical Plan to coordinate a smooth transition,” said Maritza
Borrajero, president of Molina Healthcare of Florida. “This
transaction helps us to continue solidifying our presence in the
region while also demonstrating our commitment to the Medicaid
program and to the state.”
About Molina Healthcare of Florida, Inc.
Molina Healthcare of Florida is contracted with the Florida
Agency for Health Care Administration for both the Managed Medical
Assistance (MMA) and Long-term Care (LTC) components of the
Statewide Medicaid Managed Care (SMMC) program, serving a total of
25 counties under those combined programs. Molina Healthcare of
Florida also operates Medicare Dual-Eligible Special Needs Plans in
seven Florida counties, and offers certified Qualified Health Plans
to individuals on the Florida Health Insurance Exchange in the
non-group health insurance marketplace. Total enrollment across all
products approximates 350,000 as of March 2015.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed
health care services under the Medicaid and Medicare programs and
through the state insurance marketplaces. Molina serves more than 3
million members through locally operated health plans in 11 states
across the nation and in the Commonwealth of Puerto Rico. Doctor C.
David Molina founded the company in 1980 as a provider organization
serving low-income families in Southern California. Today, the
company continues his mission of providing high-quality and
cost-effective health care to those who need it most. For more
information about Molina Healthcare, please visit
molinahealthcare.com.
About Preferred Medical Plan, Inc.
Since 1975, Preferred Medical Plan has been a leader in
providing comprehensive health care products in Florida. The
company operates Medicaid and Marketplace health plans in South
Florida. More information about Preferred Medical Plan is available
at pmpmarketplace.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
“forward-looking statements” regarding the proposed transaction
between Preferred Medical Plan, Inc. and Molina Healthcare of
Florida, Inc. All forward-looking statements are based on current
expectations that are subject to numerous risk factors that could
cause actual results to differ materially. Such risk factors
include, without limitation, risks related to: the satisfaction or
waiver of closing conditions for the transaction, successfully
transitioning and integrating Preferred Medical Plan’s members into
Molina’s Florida health plan, attrition in membership pending the
completion of and following the transition, maintaining provider
relations, accurately estimating incurred but not reported medical
costs with respect to this new population, and the possibility that
the transaction will not be completed on a timely basis or at all.
Additional information regarding the risk factors to which Molina
Healthcare is subject is provided in greater detail in its periodic
reports and filings with the Securities and Exchange Commission,
including its most recent Annual Report on Form 10-K. These reports
can be accessed under the investor relations tab of Molina
Healthcare’s website or on the SEC’s website at sec.gov. Given
these risks and uncertainties, Molina Healthcare can give no
assurances that its forward-looking statements will prove to be
accurate, or that any other results or events projected or
contemplated by our forward-looking statements will in fact occur,
and Molina Healthcare cautions investors not to place undue
reliance on these statements. All forward-looking statements in
this release represent Molina Healthcare’s judgment as of the date
hereof, and Molina Healthcare disclaims any obligation to update
any forward-looking statements to conform the statement to actual
results or changes in our expectations that occur after the date of
this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20150714006630/en/
Molina Healthcare, Inc.Investor Relations:Juan José Orellana,
562-435-3666orPublic Relations:Sunny Yu, 562-477-1608orPreferred
Medical Plan, Inc.Albert Arca, 305-648-4010President
Molina Healthcare (NYSE:MOH)
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