LONG BEACH, Calif.--(BUSINESS WIRE)--Oct. 9, 2015--
Molina Healthcare, Inc. (NYSE: MOH) and Loyola Physician Partners, LLC,
(Loyola) 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 relating to Loyola
Physician Partners’ Medicaid business in the State of Illinois. As a
part of the transaction, Molina Healthcare of Illinois will receive the
right to transition Loyola’s Medicaid members in Cook County and assume
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
conditions, the closing of the transaction is expected to occur in the
first quarter of 2016.
Loyola, through the Accountable Care Entity Loyola Family Care, provides
a medical home for approximately 20,000 members in the Medicaid Family
Health program in Cook County. Solely owned by the Loyola University
Health System (LUHS), Loyola’s provider network includes Loyola
University Medical Center, Gottlieb Memorial Hospital, LUHS employed
physicians, affiliated physicians, Pillars, Proviso Township Mental
Health Commission, and Catholic Charities of the Archdiocese of Chicago.
“Agreements such as this are positive not only from a spending point of
view but also to promote quality care,” said Felicia Norwood, Director
of the Illinois Department of Healthcare and Family Services. “The
department strongly supports fiscally sustainable approaches to provide
care for our state’s vulnerable citizens.”
“We look forward to further expanding our services into the Chicago area
and welcoming Loyola’s members to the Molina Healthcare family,” said
Cathy Harvey, president of Molina Healthcare of Illinois. “We are
committed to working with Loyola’s extensive provider network to ensure
that our new members receive the highest level of care possible. This
agreement with Loyola builds upon our existing operations within the
state to further reinforce our commitment to the Medicaid program in
Illinois.”
“Loyola Physician Partners is pleased to have Molina’s expertise in
managing Medicare and Medicaid programs and long-standing commitment to
underserved communities to ensure a quality healthcare experience for
our members,” said Keith Veselik, MD, medical director, Loyola Physician
Partners. “Loyola Physician Partners will continue to provide the
members with a primary care medical home, specialty care, and care
coordination. The strengths of both organizations will be combined to
enhance the experience of our shared members.”
About Molina Healthcare of Illinois, Inc.
Molina Healthcare of Illinois currently operates Medicaid and Medicare
health plans with total membership of approximately 101,000 as of June
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. Through our locally operated health plans
in 11 states across the nation and in the Commonwealth of Puerto Rico,
Molina 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 Loyola Physician Partners, LLC.
Loyola Physician Partners is a limited liability company with more than
1,000 participants. Together we form a network that includes a major
academic medical center, community hospitals, home health, inpatient
rehab, skilled nursing facilities, and community agencies. More
information about Loyola Physician Partners is available at loyolamedicine.org/familycare
or contact Lauren Borrowdale at 708-216-2494 or lauren.borrowdale@luhs.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 Loyola Physician
Partners, LLC 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 Loyola’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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151009005288/en/
Source: Molina Healthcare, Inc.
Molina Healthcare:
Investor Relations
Juan José Orellana,
562-435-3666
or
Public Relations
Loreani Guadalupe,
562-533-5754
or
Loyola University Health System:
Jim
Ritter, 708-216-2445
Senior Media Manager
jritter@lumc.edu
