Molina Healthcare Announces Acquisition of Better Health Network in Cook County
November 30 2015 - 4:15PM
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.
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Molina Healthcare, Inc.Juan José Orellana, 562-435-3666Investor
RelationsorSunny Yu, 562-477-1608Public RelationsorBetter Health
Network, LLCCynthia A. Yannias, 773-896-2588Executive
Directorcyannias@betterhealthchicago.org
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