Molina Healthcare to Acquire Medicaid Assets of Columbia United Providers in the State of Washington
November 12 2015 - 7:00AM
Business Wire
Molina Healthcare, Inc. (NYSE: MOH) and Columbia United
Providers, Inc. (CUP) announced today that Molina Healthcare of
Washington, Inc., a wholly owned subsidiary of Molina Healthcare
Inc., has entered into a definitive agreement to acquire certain
assets of CUP’s Medicaid business. As a part of the transaction,
Molina Healthcare of Washington will receive the right to assume
CUP’s Medicaid membership in the state of Washington, as well as
certain other rights and assets related to the operation of the
Medicaid business. Molina Healthcare of Washington will fund the
transaction with available cash. Subject to regulatory approvals
and the satisfaction of other closing conditions, the transaction
is expected to close during the first quarter of 2016.
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“CUP has provided excellent service to Medicaid members in Clark
County for more than 20 years. We are honored to welcome CUP
members to Molina, and we look forward to carrying on their
commitment to the Southwest Washington community and building upon
our current relationships with providers throughout the region,”
said Peter Adler, president of Molina Healthcare of Washington.
“This proposed transaction allows Molina to better serve the
growing Medicaid population, maintain continuity of care for CUP
members, and further deepen our commitment to the Medicaid program
in Washington.”
CUP provides coverage for medical services throughout the
Southwest Region of Washington serving more than 55,000 Medicaid
members in Clark County.
“The best way to meet the needs of our community, and to
maximize CUP’s potential, is to join with the strengths and
resources of a larger Medicaid specialist,” explained Cynthia
Finter, interim CEO of CUP. “Molina’s track record for quality and
innovation, as well as its focus on serving those who qualify for
government programs, will allow our members to receive expanded
capabilities while we continue our history of service to our
members and their providers. We are excited to work closely with
Molina, the top Medicaid plan in the state of Washington and one of
the leading national plans.”
About Molina Healthcare of Washington, Inc.
Molina Healthcare of Washington was established in 1985 and
serves nearly 570,000 members statewide. Molina contracts with the
Washington State Health Care Authority through Apple Health, the
state Medicaid program, to serve Medicaid members throughout the
state. The Company also manages a Medicare Special Needs Plan and
participates in Washington Health Exchange, the state based
Marketplace, in several counties across the state.
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 Columbia United Providers, Inc.
Founded in 1994, Columbia United Providers, Inc. is a health
plan, committed to providing coverage for high quality care and
services for the community. More information about Columbia United
Providers is available at cuphealth.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 Columbia United Providers, Inc. and Molina Healthcare of
Washington, 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, including the
receipt of regulatory approvals; successfully transitioning and
integrating Columbia United Providers’ members into Molina
Healthcare of Washington; attrition in membership pending the
completion of and following the transition; maintaining provider
relations; accurately estimating medical costs with respect to this
population; the receipt of a contract award from the Washington
State Health Care Authority’s RFP process for Clark and Skamania
Counties; 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20151112005679/en/
Molina Healthcare, Inc.Juan José Orellana, 562-435-3666Investor
RelationsorLaura Hart, 562-506-9208Public RelationsorColumbia
United ProvidersTim Strickland, 615-330-5290Media RelationsorJeremy
Rush, 615-255-3967Media Relations
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