Molina to acquire Medicaid assets of Columbia United Providers
LONG BEACH, California – Molina Healthcare, Inc. (NYSE: MOH) and Columbia United Providers, Inc. (CUP) announced today that Molina Healthcare of Washington, Inc., a wholly owned subsidiary of Molina Healthcare Inc., has entered into a definitive agreement to acquire certain assets of CUP’s Medicaid business. As a part of the transaction, Molina Healthcare of Washington will receive the right to assume CUP’s Medicaid membership in the state of Washington, as well as certain other rights and assets related to the operation of the Medicaid business. Molina Healthcare of Washington will fund the transaction with available cash. Subject to regulatory approvals and the satisfaction of other closing conditions, the transaction is expected to close during the first quarter of 2016.
“CUP has provided excellent service to Medicaid members in Clark County for more than 20 years. We are honored to welcome CUP members to Molina, and we look forward to carrying on their commitment to the Southwest Washington community and building upon our current relationships with providers throughout the region,” said Peter Adler, president of Molina Healthcare of Washington. “This proposed transaction allows Molina to better serve the growing Medicaid population, maintain continuity of care for CUP members, and further deepen our commitment to the Medicaid program in Washington.”
CUP provides coverage for medical services throughout the Southwest Region of Washington serving more than 55,000 Medicaid members in Clark County.
“The best way to meet the needs of our community, and to maximize CUP’s potential, is to join with the strengths and resources of a larger Medicaid specialist,” explained Cynthia Finter, interim CEO of CUP. “Molina’s track record for quality and innovation, as well as its focus on serving those who qualify for government programs, will allow our members to receive expanded capabilities while we continue our history of service to our members and their providers. We are excited to work closely with Molina, the top Medicaid plan in the state of Washington and one of the leading national plans.”