Molina Healthcare to Expand New York Presence Through Acquisition of Certain Assets of YourCare Health Plan
October 16 2019 - 6:00AM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) today announced that it has
entered into a definitive agreement to acquire certain assets of
YourCare Health Plan, Inc., a not-for-profit subsidiary of Monroe
Plan for Medical Care. As a part of the transaction, Molina will
assume the right to serve approximately 46,000 Medicaid members in
seven counties in the Western New York and Finger Lakes regions.
Monroe and its affiliate MP CareSolutions will continue to provide
certain management and administrative services related to member
care and provider relations.
The purchase price of approximately $40 million will be funded
through Molina’s available cash. Subject to the receipt of
regulatory approvals and the satisfaction of other customary
conditions, the closing of the transaction is expected to occur in
early 2020. YourCare’s estimated premium revenue for the full year
2019 is approximately $285 million.
“We look forward to providing high-quality care to YourCare
members in close partnership with the New York Department of Health
and the provider community in the Western New York and Finger Lakes
regions,” said Colleen Schmidt, president of Molina Healthcare of
New York. “Molina is excited to partner with Monroe and MP
CareSolutions on select services to facilitate access to quality
health care and ensure a seamless transition for members and
providers. This agreement represents an exciting opportunity to
build upon our existing operations in New York and expand into new
service areas.”
About Molina Healthcare
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 its locally
operated health plans, Molina Healthcare served approximately 3.4
million members as of June 30, 2019. For more information about
Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
This press release contains “forward-looking statements”
regarding the proposed acquisition by Molina of certain assets of
YourCare. 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 possibility that
the transaction will not be completed on a timely basis or at all;
the risk that regulatory or other approvals required for the
transaction may be delayed or not obtained, or are obtained subject
to conditions that are not anticipated that could require the
exertion of management's time and resources or otherwise have an
adverse effect on Molina; the possible attrition in YourCare
membership pending the completion of and following the closing of
the transaction; the difficulty of maintaining new provider
relations and managing potential medical cost increases resulting
from potentially unfavorable changes in contracting or
re-contracting with providers; the risk that, following the
transaction, estimated premium revenue of YourCare or expected
synergies and value creation from the transaction may not be
realized, or will not be realized within the expected time period;
the risk that Molina is unable to accurately estimate incurred but
not reported medical costs with respect to this new population; and
the risk that unexpected costs will be incurred in connection with
the assumption of the YourCare membership or that the expansion to
new regions will be more difficult or time consuming than expected.
Additional information regarding the risk factors to which the
Company is subject to, 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
the Company’s website or on the SEC’s website at sec.gov. Given
these risks and uncertainties, the Company 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 its
forward-looking statements will in fact occur, and the Company
cautions investors not to place undue reliance on these statements.
All forward-looking statements in this release represent the
Company’s judgment as of the date hereof, and, except as otherwise
required by law, Molina disclaims any obligation to update any
forward-looking statements to conform the statement to actual
results or changes in its expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20191016005260/en/
Investor Contact: Julie Trudell,
Julie.Trudell@molinahealthcare.com, 562-912-6720 Media
Contact: Laura Murray, Laura.Murray@molinahealthcare.com,
562-506-9208
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