Molina Healthcare Plans Acquisition of Medicaid Assets of Preferred Medical Plan

Molina Healthcare and Preferred Medical Plan (Preferred) jointly reported that Molina Healthcare of Florida, a subsidiary of Molina Healthcare, has entered into a definitive agreement to acquire certain assets of Preferred's Medicaid business in Florida.

According to a media release, 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.

Molina Healthcare of Florida is contracted with the Florida Agency for Health Care Administration for both the Managed Medical Assistance (MMA) and Long-term Care (LTC) components of the Statewide Medicaid Managed Care (SMMC) program, serving a total of 25 counties under those combined programs.

Molina Healthcare, Inc., a Fortune 500 company, provides managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces.

Since 1975, Preferred Medical Plan provides health care products in Florida.