Molina Healthcare to Acquire the Total Care Medicaid Plan in Upstate New York from Universal American
April 19 2016 - 4:15PM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Universal American Corp.
(NYSE: UAM) jointly announced today that they entered into a
definitive agreement in which Molina will acquire Universal
American’s Total Care Medicaid plan in upstate New York.
Total Care is a prepaid health services plan that provides
health care coverage to approximately 39,000 members under the
Medicaid and Child Health Plus programs in the three upstate New
York counties of Cortland, Onondaga and Tompkins. Under the terms
of the agreement, Molina will acquire all the outstanding equity
interests of Today’s Options of New York, Inc., which operates the
Total Care Medicaid plan, for a purchase price of $41.3 million,
subject to closing date balance sheet adjustments. Molina will fund
the transaction with available cash. The transaction is subject to
regulatory approvals and other conditions and is expected to close
in the third quarter of 2016.
“We look forward to participating in New York’s Medicaid managed
care program,” said Dr. J. Mario Molina, president and
chief executive officer of Molina Healthcare, Inc. “This
transaction expands our footprint into the top five largest
Medicaid markets across the county and serves to further our
strategy of continued geographic diversification. Over the next
several months we will work closely with the New York State
Department of Health, local providers and community organizations
to continue fulfilling our mission of providing access to
high-quality care.”
Richard A. Barasch, chairman and chief executive officer of
Universal American, commented, “With the sale of our Total Care
Medicaid plan, we can better concentrate our efforts on our
Medicare Advantage and Medicare ACO businesses. We improved the
operations of the Total Care plan during our ownership and believe
that Molina’s extensive experience in Medicaid will allow for
continued improvements to the plan for the benefit of its
members.”
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. Through our locally
operated health plans in 11 states across the nation and in the
Commonwealth of Puerto Rico, Molina serves approximately 3.9
million members. 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 Universal American Corp.
Through its family of healthcare companies, Universal American
provides health benefits to people covered by Medicare and
Medicaid. The company is dedicated to working collaboratively with
healthcare professionals, especially primary care physicians, in
order to improve the health and well-being of those they serve
while reducing healthcare costs. More information about Universal
American is available at universalamerican.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 Molina Healthcare and Universal American. 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 timely closing of the
transaction, including the need to obtain regulatory approvals and
other third party consents; any conditions imposed on the parties
by regulators in connection with consummating the transaction
described herein; Total Care’s ability to maintain relationships
with providers, employees and other stakeholders following the
announcement of this transaction; the ability of the parties to
satisfy other conditions to closing the transaction described
herein; the integration of the operations and employees of Total
Care’s business into Molina Healthcare’s business; the retention
and renewal of Total Care’s business contracts; Total Care’s future
financial condition and operating results; 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 the
parties are subject is provided in greater detail in their
respective periodic reports and filings with the Securities and
Exchange Commission, including each party’s most recent Annual
Report on Form 10-K. These reports can be accessed under the
investor relations tab of each party’s website or on the SEC’s
website at sec.gov. Given these risks and uncertainties, neither
party can give assurances that its forward-looking statements will
prove to be accurate, or that any other results or events projected
or contemplated by its forward-looking statements will in fact
occur, and each party cautions investors not to place undue
reliance on these statements. All forward-looking statements in
this release represent the parties’ judgment as of the date hereof,
and each party disclaims any obligation to update any
forward-looking statements to conform the statement to actual
results or changes in a party’s expectations that occur after the
date of this release.
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version on businesswire.com: http://www.businesswire.com/news/home/20160419006748/en/
Molina HealthcareInvestor Relations:Juan José Orellana,
562-435-3666orPublic Relations:Sunny Yu, 562-901-1039orUniversal
American Corp.Adam Thackery, 914-597-2939Chief Financial
Officer
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