Molina Healthcare, Inc. (NYSE: MOH) and Accountable Care Chicago, LLC,
also known as MyCare Chicago, 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 of the Medicaid business of MyCare Chicago. As a part of
the transaction, Molina Healthcare of Illinois will receive the right to
assume MyCare Chicago’s Medicaid members in Cook County, Illinois, as
well as 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 closing conditions, the closing of the transaction
is expected to occur during the fourth quarter of 2015.
“This move is an exciting step in coordinating care to help those in
need at sustainable costs,” said Felicia Norwood, Director of the
Department of Healthcare and Family Services, noting that HFS created
and funded the care coordination entities. “We believe that provider
sponsored and managed care organizations can thrive and offer superior
care for our clients.”
MyCare Chicago, currently one of 11 Accountable Care Entities operating
in Illinois, brings together providers across Chicago to offer a full
range of medical services and coordinate care for approximately 61,000
Medicaid enrollees in Cook County, Illinois. MyCare Chicago will
continue to operate its provider network and coordinate care for certain
enrollees through a services agreement with Molina Healthcare of
Illinois.
“We look forward to expanding our services into Cook County and
welcoming additional members to Molina Healthcare upon the closing of
the transaction,” said Cathy Harvey, president of Molina Healthcare of
Illinois. “We are committed to working with MyCare Chicago providers to
coordinate care for our members in a respectful and caring manner
consistent with our shared mission and values. This agreement with
MyCare Chicago builds upon our existing operations within the state to
further reinforce our commitment to the Medicaid program in Illinois.”
“The founders are proud to be co-creators of a cutting edge model to
build and strengthen provider-driven care that manages and assures
access for Chicago’s most vulnerable,” said Mark Newton, chair of the
MyCare Chicago board and president of Swedish Covenant Hospital. “The
agreement between MyCare Chicago and Molina Healthcare of Illinois
provides the resources needed to invest in advanced information systems
and patient centered care coordination systems that improve population
health status and lower costs.”
About Molina Healthcare of Illinois, Inc.
Molina Healthcare of Illinois currently operates Medicaid and Medicare
health plans with total membership of approximately 102,000 as of March
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. Molina serves more than 3 million members
through our locally operated health plans in 11 states across the nation
and in the Commonwealth of Puerto Rico. 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 MyCare Chicago
Launched in 2014, MyCare Chicago is an, Accountable Care Entity owned
and operated by several local Chicago hospitals, and family health
centers. The company manages the provider network and coordinates care
for 61,000 Medicaid members (as of June 2015) through its contract with
the Illinois Department of Healthcare and Family Services. Owners of
MyCare Chicago include:
-
Hospitals - Ann & Robert H. Lurie Children’s Hospital of
Chicago, Mercy Hospital and Medical Center, Norwegian American
Hospital, Swedish Covenant Hospital
-
Health Centers - Asian Human Services Family Health Center,
Erie Family Health Center, Heartland Health Centers, Near North Health
Service Corporation, PCC Community Wellness Center
More information about MyCare Chicago is available at mycarechicago.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 MyCare Chicago
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 MyCare Chicago’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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