Molina Healthcare to Continue Illinois Expansion Through Acquisition of Loyola Physician Partners' Medicaid Program in Cook C...
October 09 2015 - 7:00AM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Loyola Physician
Partners, LLC, (Loyola) 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 Loyola Physician Partners’
Medicaid business in the State of Illinois. As a part of the
transaction, Molina Healthcare of Illinois will receive the right
to transition Loyola’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 on hand. Subject to regulatory approvals and the
satisfaction of other conditions, the closing of the transaction is
expected to occur in the first quarter of 2016.
Loyola, through the Accountable Care Entity Loyola Family Care,
provides a medical home for approximately 20,000 members in the
Medicaid Family Health program in Cook County. Solely owned by the
Loyola University Health System (LUHS), Loyola’s provider network
includes Loyola University Medical Center, Gottlieb Memorial
Hospital, LUHS employed physicians, affiliated physicians, Pillars,
Proviso Township Mental Health Commission, and Catholic Charities
of the Archdiocese of Chicago.
“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 look forward to further expanding our services into the
Chicago area and welcoming Loyola’s members to the Molina
Healthcare family,” said Cathy Harvey, president of Molina
Healthcare of Illinois. “We are committed to working with Loyola’s
extensive provider network to ensure that our new members receive
the highest level of care possible. This agreement with Loyola
builds upon our existing operations within the state to further
reinforce our commitment to the Medicaid program in Illinois.”
“Loyola Physician Partners is pleased to have Molina’s expertise
in managing Medicare and Medicaid programs and long-standing
commitment to underserved communities to ensure a quality
healthcare experience for our members,” said Keith Veselik, MD,
medical director, Loyola Physician Partners. “Loyola Physician
Partners will continue to provide the members with a primary care
medical home, specialty care, and care coordination. The strengths
of both organizations will be combined to enhance the experience of
our shared members.”
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 June 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 3.4
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 Loyola Physician Partners, LLC.
Loyola Physician Partners is a limited liability company with
more than 1,000 participants. Together we form a network that
includes a major academic medical center, community hospitals, home
health, inpatient rehab, skilled nursing facilities, and community
agencies. More information about Loyola Physician Partners is
available at loyolamedicine.org/familycare or contact Lauren
Borrowdale at 708-216-2494 or lauren.borrowdale@luhs.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 Loyola Physician Partners, 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 Loyola’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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151009005288/en/
Molina Healthcare:Investor RelationsJuan José Orellana,
562-435-3666orPublic RelationsLoreani Guadalupe,
562-533-5754orLoyola University Health System:Jim Ritter,
708-216-2445Senior Media Managerjritter@lumc.edu
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