Molina Healthcare to Enter Chicago Market Through the Acquisition of MyCare Chicago’s Medicaid Assets
July 15 2015 - 6:07PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Accountable Care
Chicago, LLC, also known as MyCare Chicago, jointly announced today
that Molina Healthcare of Illinois, Inc., a wholly owned subsidiary
of Molina Healthcare, Inc., has entered into a definitive agreement
to acquire certain assets of the Medicaid business of MyCare
Chicago. As a part of the transaction, Molina Healthcare of
Illinois will receive the right to assume MyCare Chicago’s Medicaid
members in Cook County, Illinois, as well as certain assets related
to the operation of the Medicaid business. Molina Healthcare of
Illinois will fund the transaction with available cash on hand.
Subject to regulatory approvals and the satisfaction of other
closing conditions, the closing of the transaction is expected to
occur during the fourth quarter of 2015.
“This move is an exciting step in coordinating care to help
those in need at sustainable costs,” said Felicia Norwood, Director
of the Department of Healthcare and Family Services, noting that
HFS created and funded the care coordination entities. “We believe
that provider sponsored and managed care organizations can thrive
and offer superior care for our clients.”
MyCare Chicago, currently one of 11 Accountable Care Entities
operating in Illinois, brings together providers across Chicago to
offer a full range of medical services and coordinate care for
approximately 61,000 Medicaid enrollees in Cook County, Illinois.
MyCare Chicago will continue to operate its provider network and
coordinate care for certain enrollees through a services agreement
with Molina Healthcare of Illinois.
“We look forward to expanding our services into Cook County and
welcoming additional members to Molina Healthcare upon the closing
of the transaction,” said Cathy Harvey, president of Molina
Healthcare of Illinois. “We are committed to working with MyCare
Chicago providers to coordinate care for our members in a
respectful and caring manner consistent with our shared mission and
values. This agreement with MyCare Chicago builds upon our existing
operations within the state to further reinforce our commitment to
the Medicaid program in Illinois.”
“The founders are proud to be co-creators of a cutting edge
model to build and strengthen provider-driven care that manages and
assures access for Chicago’s most vulnerable,” said Mark Newton,
chair of the MyCare Chicago board and president of Swedish Covenant
Hospital. “The agreement between MyCare Chicago and Molina
Healthcare of Illinois provides the resources needed to invest in
advanced information systems and patient centered care coordination
systems that improve population health status and lower costs.”
About Molina Healthcare of Illinois, Inc.
Molina Healthcare of Illinois currently operates Medicaid and
Medicare health plans with total membership of approximately
102,000 as of March 2015. Additionally, Molina Healthcare of
Illinois participates in the Medicare-Medicaid Alignment Initiative
(MMAI) in the central part of the state. MMAI is designed for those
eligible for both Medicare and Medicaid and is a joint effort
between the Illinois Department of Healthcare and Family Services
and the federal Centers for Medicare and Medicaid Services.
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 our locally operated health plans in 11
states across the nation and in the Commonwealth of Puerto Rico.
Dr. C. David Molina founded our company in 1980 as a provider
organization serving low-income families in Southern California.
Today, we continue 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 our website at
molinahealthcare.com.
About MyCare Chicago
Launched in 2014, MyCare Chicago is an, Accountable Care Entity
owned and operated by several local Chicago hospitals, and family
health centers. The company manages the provider network and
coordinates care for 61,000 Medicaid members (as of June 2015)
through its contract with the Illinois Department of Healthcare and
Family Services. Owners of MyCare Chicago include:
- Hospitals - Ann & Robert H.
Lurie Children’s Hospital of Chicago, Mercy Hospital and Medical
Center, Norwegian American Hospital, Swedish Covenant Hospital
- Health Centers - Asian Human
Services Family Health Center, Erie Family Health Center, Heartland
Health Centers, Near North Health Service Corporation, PCC
Community Wellness Center
More information about MyCare Chicago is available at
mycarechicago.org.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains
“forward-looking statements” regarding the proposed transaction
between MyCare Chicago and Molina Healthcare of Illinois, 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 MyCare Chicago’s members into Molina’s Illinois 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150715006653/en/
Molina Healthcare, Inc.Investor Relations:Juan José
Orellana, 562-435-3666orPublic Relations:Sunny Yu,
562-477-1608orMyCare ChicagoMarketing:Michelle Francis
Munroe, 858-717-7063
Molina Healthcare (NYSE:MOH)
Historical Stock Chart
From Mar 2024 to Apr 2024
Molina Healthcare (NYSE:MOH)
Historical Stock Chart
From Apr 2023 to Apr 2024