Wednesday, July 15, 2015
Molina Healthcare, Inc. (MOH) and Preferred Medical Plan, Inc. (Preferred) today jointly announced 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 Preferred’s Medicaid business in Florida.
As a part of the transaction, Molina Healthcare of Florida will assume Preferred’s Medicaid contract in Miami-Dade and Monroe Counties, as well as acquire certain assets related to the operation of its Medicaid business. The acquisition will complement Molina Healthcare’s existing business in those counties. Molina Healthcare of Florida will fund the transaction with available cash on hand at the parent company. Subject to regulatory approvals and the satisfaction of other closing conditions, the closing of the transaction is expected to occur during the third quarter of 2015. Wells Fargo Securities served as the exclusive financial advisor to Preferred Medical Plan.
Since 1975, Preferred has provided comprehensive health care products in South Florida and currently serves approximately 25,000 Medicaid members.
“We are committed to providing continuity of care to our new members in South Florida and we will work closely with Preferred Medical Plan to coordinate a smooth transition,” said Maritza Borrajero, president of Molina Healthcare of Florida. “This transaction helps us to continue solidifying our presence in the region while also demonstrating our commitment to the Medicaid program and to the state.”
finance.yahoo.com
