Molina Healthcare Announces Agreement to Acquire My… Leave a comment
On July 13, Long Beach, Calif.-headquartered managed care company Molina Healthcare announced via a press release that it has entered into a definitive agreement to acquire substantially all the assets of Medicaid plan, Wauwatosa, Wis.-based My Choice Wisconsin (MCW), for roughly $150 million.
The press release states that “MCW is a Medicaid managed care organization serving members across Wisconsin. It has a 22-year history of serving managed long-term services and supports (MLTSS) populations, with a deep commitment to the communities it serves. As of May 2022, MCW served over 44,000 MLTSS and core Medicaid members throughout Wisconsin, delivering approximately $1 billion in premium revenue for the 12 months ending March 31, 2022.”
The release says that the transaction “represents a strong strategic fit” with the insurer’s growing MLTSS franchise and Wisconsin core Medicaid business. Molina will fund the purchase with cash on hand. It is expected to close in 2022, pending regulatory approvals.
Joe Zubretsky, president and CEO of Molina Healthcare was quoted in the release saying that “The addition of My Choice Wisconsin to Molina’s expanding footprint is not only complementary to our existing Medicaid business in Wisconsin, but also representative of our strategic growth initiatives. Today’s announcement demonstrates our continuing success acquiring value enhancing revenue streams at attractive valuations.”
