Molina Healthcare Announces Acquisition of Better Health Network in Cook County
LONG BEACH, Calif.–(BUSINESS WIRE)–Molina Healthcare, Inc. (NYSE: MOH) and Better Health Network, LLC
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 relating to Better
Health’s Medicaid business in the State of Illinois. As a part of the
transaction, Molina Healthcare of Illinois will receive the right to
transition Better Health’s Medicaid members in Cook County and assume
certain assets related to the operation of the Medicaid business. Molina
Healthcare of Illinois will fund the transaction with available cash.
Subject to regulatory approvals and the satisfaction of other
conditions, the closing of the transaction is expected to occur in the
second quarter of 2016.
Better Health is an Accountable Care Entity owned and operated by
several local Chicago providers. The Company serves nearly 40,000
members in the Medicaid Family Health program in Cook County.
“Agreements such as this are positive not only from a spending point of
view but also to promote quality care,” said Felicia Norwood, Director
of the Illinois Department of Healthcare and Family Services. “The
department strongly supports fiscally sustainable approaches to provide
care for our state’s vulnerable citizens.”
“We are pleased to announce our third acquisition in the Chicago area
this year, and we look forward to serving Better Health Network’s
members once this transaction is closed,” said Cathy Harvey, president
of Molina Healthcare of Illinois. “This agreement further demonstrates
our deep commitment to the Illinois Medicaid program and individuals
receiving government-sponsored health care, and we welcome the
opportunity to work closely with the provider community so that we could
provide the highest quality of care to our members.”
“The Board of Managers of Better Health Network is pleased to enter into
this agreement with Molina Healthcare. Given Molina’s experience with
community programs and history of ensuring access to quality,
cost-effective health care, we think this transaction will provide
long-term benefits to our members,” said Charles Holland, President of
the Board of Managers of Better Health Network.
About Molina Healthcare of Illinois, Inc.
Molina Healthcare of Illinois currently operates Medicaid and Medicare
health plans with total membership of approximately 101,000 as of
September 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. Through our locally operated health plans
in 11 states across the nation and in the Commonwealth of Puerto Rico,
Molina serves approximately 3.5 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 Better Health Network, LLC
Launched in December 2013, Better Health Network is an Accountable Care
Entity serving Medicaid recipients in the south and west communities of
Chicago and Cook County. Through clinical integration of its network,
person-centered care coordination and preventive health education,
Better Health Network helped members to achieve their health care goals.
Owners of Better Health Network include the following community based
hospitals, health centers and physician organization:
- St. Bernard Hospital and Health Center
- Loretto Hospital
- Roseland Community Hospital
- South Shore Hospital
- Aunt Martha’s Youth Centers & Health Centers
- Beloved Community Family Wellness Center
- Partners in Health
More information about Better Health is available at betterhealthchicago.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 Better Health
Network, LLC 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 Better Health’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 its 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 its
expectations that occur after the date of this release.
Contacts
Molina Healthcare, Inc.
Juan José Orellana, 562-435-3666
Investor
Relations
or
Sunny Yu, 562-477-1608
Public Relations
or
Better
Health Network, LLC
Cynthia A. Yannias, 773-896-2588
Executive
Director
cyannias@betterhealthchicago.org
