Molina Healthcare, Inc. (NYSE: MOH) and Integral Health Plan, Inc.
(d/b/a Integral Quality Care) announced today that Molina Healthcare of
Florida, Inc., a wholly owned subsidiary of Molina Healthcare Inc., has
entered into a definitive agreement to acquire certain assets of the
Medicaid business of Integral Quality Care. As a part of the
transaction, Molina Healthcare of Florida will receive the right to
assume Integral’s Medicaid members in the state of Florida, certain
provider agreements, as well as other assets related to the operation of
the Medicaid business. Molina Healthcare of Florida will fund the
transaction with available cash on hand at the parent. 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.
Integral Quality Care is a non-profit, provider-sponsored corporation
operating as a Provider Service Network (PSN) and full-risk health plan.
The Company administers health care services to Medicaid beneficiaries
in the following Florida regions: Northwest (Pensacola/Medicaid Region
1, Tampa/Medicaid Region 6) and Southwest (Medicaid Region 8) for more
than 90,000 Medicaid enrollees.
“We are proud to welcome the members of Integral Quality Care to Molina,
and we look forward to continuing both Integral’s and Molina’s shared
mission of providing high quality care,” said Maritza Borrajero,
president of Molina Healthcare of Florida. “The acquisition will allow
Molina to provide services in seven regions across the state and further
demonstrates our commitment to Medicaid, the state of Florida and those
in need of government-sponsored health care.”
Jennifer A. Sweet, CEO of Integral Quality Care, added, “Integral is
pleased to have established this agreement with Molina Healthcare of
Florida, which we expect will continue the Plan’s history of providing
compassionate health benefits to our Medicaid members and respectful
partnering with the healthcare providers that deliver care to our
members.”
About Molina Healthcare of Florida, Inc.
Molina Healthcare of Florida is contracted with the Florida Agency for
Health Care Administration for both the Managed Medical Assistance (MMA)
and Long-term Care (LTC) components of the Statewide Medicaid Managed
Care (SMMC) program, serving a total of 25 counties under those combined
programs. Molina Healthcare of Florida also operates Medicare
Dual-Eligible Special Needs Plans in seven Florida counties, and offers
certified Qualified Health Plans to individuals on the Florida Health
Insurance Exchange in the non-group health insurance marketplace. Total
enrollment across all products approximates 350,000 as of June 2015.
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 currently 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 Integral Health Plan, Inc.
Founded in 2009, Integral Quality Care, Inc. is a non-profit Medicaid
health plan with a mission to deliver high quality, accessible care to
its members. As a provider sponsored network, the Company’s sponsors
include Collier Health Services, Inc. d/b/a Healthcare Network of
Southwest Florida and the Association of Area Delivery Systems Sponsors,
Inc. More information about Integral Quality Care is available at integralqualitycare.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 Integral Health
Plan, Inc. and Molina Healthcare of Florida, 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 Integral Health
Plan’s members into Molina Healthcare of Florida, 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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