Published on : Jul 15, 2015
Molina Healthcare, Inc., the Florida based company that operates in nearly 25 coutries in the fields of managed medical assistance and long term care, along with Preferred Medical Plan, Inc. has today announced that Molina Healthcare has signed a definitive agreement for acquiring certain assets of Preferred Medical Plan, Inc.’s Florida based Medicaid business.
Molina Healthcare also operates in the field of special needs in seven Florida countries, and offers numerous health plans. As a part of today’s announcement regarding the acquisition of Preferred Medical Plan Inc.’s assets, Molina Healthcare will assume the Preferred’s contract of Medicaid in Monroe countries and Miami-Dade. The acquisition will also cover certain assets related to the operations of Preferred’s overall Medicaid business.
The acquisition will help Molina in improving its current business in those countries that were, till now, dominated by Preferred. Molina Healthcare has decided to fund the transaction with cash available on hand with the parent company. Based on the conditions of regulatory approval and clearance of other closing conditions, the transaction is expected to occur during this year’s third quarter.
Preferred Medical Plan’s financial advisor for this deal was Wells Fargo Securities. Preferred is operating in the field of comprehensive healthcare in South Florida since the year 1975 and currently serves nearly 25,000 Medicaid members.
President of Molina Healthcare of Florida, Maritza Borrajero, said that it is committed to providing continuity of care to the new members it will now serve as a part of Preferred Medical Plan’s customer base in South Florida. He added that the company will work closely with Preferred and ensure a smooth transitioning for the customers. Also, the transaction will help Molina Healthcare of Florida in continuing to solidify its presence in the region, while also showing its commitment towards the Medicaid program.