LONG BEACH, Calif.--(BUSINESS WIRE)--Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered into a definitive agreement to acquire certain assets of YourCare Health Plan, Inc., a not-for-profit subsidiary of Monroe Plan for Medical Care. As a part of the transaction, Molina will assume the right to serve approximately 46,000 Medicaid members in seven counties in the Western New York and Finger Lakes regions. Monroe and its affiliate MP CareSolutions will continue to provide certain management and administrative services related to member care and provider relations.
The purchase price of approximately $40 million will be funded through Molina’s available cash. Subject to the receipt of regulatory approvals and the satisfaction of other customary conditions, the closing of the transaction is expected to occur in early 2020. YourCare’s estimated premium revenue for the full year 2019 is approximately $285 million.
“We look forward to providing high-quality care to YourCare members in close partnership with the New York Department of Health and the provider community in the Western New York and Finger Lakes regions,” said Colleen Schmidt, president of Molina Healthcare of New York. “Molina is excited to partner with Monroe and MP CareSolutions on select services to facilitate access to quality health care and ensure a seamless transition for members and providers. This agreement represents an exciting opportunity to build upon our existing operations in New York and expand into new service areas.”
About Molina Healthcare
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 its locally operated health plans, Molina Healthcare served approximately 3.4 million members as of June 30, 2019. For more information about Molina Healthcare, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This press release contains “forward-looking statements” regarding the proposed acquisition by Molina of certain assets of YourCare. 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 possibility that the transaction will not be completed on a timely basis or at all; the risk that regulatory or other approvals required for the transaction may be delayed or not obtained, or are obtained subject to conditions that are not anticipated that could require the exertion of management's time and resources or otherwise have an adverse effect on Molina; the possible attrition in YourCare membership pending the completion of and following the closing of the transaction; the difficulty of maintaining new provider relations and managing potential medical cost increases resulting from potentially unfavorable changes in contracting or re-contracting with providers; the risk that, following the transaction, estimated premium revenue of YourCare or expected synergies and value creation from the transaction may not be realized, or will not be realized within the expected time period; the risk that Molina is unable to accurately estimate incurred but not reported medical costs with respect to this new population; and the risk that unexpected costs will be incurred in connection with the assumption of the YourCare membership or that the expansion to new regions will be more difficult or time consuming than expected. Additional information regarding the risk factors to which the Company is subject to, 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 the Company’s website or on the SEC’s website at sec.gov. Given these risks and uncertainties, the Company 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 the Company cautions investors not to place undue reliance on these statements. All forward-looking statements in this release represent the Company’s judgment as of the date hereof, and, except as otherwise required by law, Molina disclaims any obligation to update any forward-looking statements to conform the statement to actual results or changes in its expectations.