Molina Healthcare Enters South Carolina by Acquiring Assets from Community Health Solutions
Molina Healthcare, Inc. (NYSE: MOH) announced today that its wholly
owned subsidiary, Molina Healthcare of South Carolina, Inc., has entered
into a definitive agreement with Community Health Solutions of America,
Inc. (CHS) to acquire certain assets of CHS relating to its South
Carolina Solutions (SCS) business.
“We are very excited to participate in South Carolina’s Medicaid managed
care program,” said J. Mario Molina, MD, President and Chief Executive
Officer of Molina Healthcare. “This transaction positions our South
Carolina health plan for growth in advance of the state’s rollout of its
new Medicaid managed care program. We look forward to partnering with
both the state of South Carolina and the local provider community to
continue providing quality patient-focused health care.”
Pursuant to the terms of the agreement, CHS has agreed to transfer to
Molina Healthcare the Medical Homes Network (MHN) membership of CHS,
except for those members enrolled in the Medically Complex Children’s
Waiver component of the MHN program. Such transfer will be contingent on
Molina’s successful receipt of an HMO license from the South Carolina
Department of Insurance, the award to Molina Healthcare of a full-risk
Medicaid managed care contract by the South Carolina Department of
Health and Human Services, and the state’s conversion of the MHN program
to a full-risk Medicaid managed care program. Each of these three
conditions is expected to be satisfied by January 2014.
“We are confident Molina will continue to improve member health outcomes
while managing costs for the state of South Carolina,” said Dale
Schmidt, Chairman and Chief Executive Officer of CHS. “CHS will continue
to serve South Carolina’s most fragile children through the Medically
Complex Children’s Waiver program, and we look forward to focusing our
efforts on growth opportunities in other states.”
Of the approximately 150,000 Medicaid members currently served by SCS,
approximately 136,000 members are enrolled in the State of South
Carolina’s Temporary Aid for Needy Families (TANF) and Supplemental
Security Income (SSI) programs. Approximately 14,000 members are
currently enrolled as voluntary dual eligible members as part of the MHN
and are not currently part of the full-risk program in the state.
About Molina Healthcare, Inc.
Molina Healthcare, Inc. (NYSE: MOH), a FORTUNE 500 company, provides
quality and cost-effective Medicaid-related solutions to meet the health
care needs of low-income families and individuals and to assist state
agencies in their administration of the Medicaid program. Our licensed
health plans in California, Florida, Michigan, New Mexico, Ohio, Texas,
Utah, Washington, and Wisconsin currently serve approximately 1.8
million members, and our subsidiary, Molina Medicaid Solutions, provides
business processing and information technology administrative services
to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West
Virginia, and drug rebate administration services in Florida. More
information about Molina Healthcare is available at www.molinahealthcare.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 South Carolina
Solutions and our South Carolina health plan. All of our forward-looking
statements are based on our current expectations that are subject to
numerous risk factors that could cause actual results to differ
materially. Such risk factors include, without limitation: obtaining a
HMO license in the State of South Carolina; obtaining and entering into
a new managed care contract with the State of South Carolina at rates
consistent with our expectations; successfully transitioning and
integrating the MHN members into our health plan; building a sufficient
provider network in the State of South Carolina; 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 transition will not be completed on a timely basis or at all.
Additional information regarding the risk factors to which we are
subject is provided in greater detail in our periodic reports and
filings with the Securities and Exchange Commission, including our most
recent Annual Report on Form 10-K. These reports can be accessed under
the investor relations tab of our company website or on the SEC’s
website at www.sec.gov.
Given these risks and uncertainties, we can give no assurances that our
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 we caution investors not to place
undue reliance on these statements. All forward-looking statements in
this release represent our judgment as of the date hereof, and we
disclaim 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.
Copyright Business Wire 2013