Managed Care Deals Keep on Coming
Even in a slow week for health care M&A, two transactions in the Managed Care sector surfaced. They weren’t the mega-mergers announced a few months ago, but they’re a sign this segment is still consolidating, even on the lower end of the scale. On October 8, Nassau Reinsurance Group, which was launched last April and backed by Golden Gate Capital, announced it would acquire the Traditional Insurance business of Universal American Corp. (NYSE: UAM). The assets consist of a closed block of insurance products, including Medicare supplement, other senior health insurance, specialty health insurance and life insurance products that include long-term care policies. Nassau agreed... Read More »Molina Buys Behavioral Health Companies
The Providence Service Corporation (NASDAQ: PRSC) last week sold two of its subsidiaries, Providence Human Services, LLC and Providence Community Services, LLC, to Molina Healthcare, Inc. (NYSE: MOH) for a combined $200 million. PHS is one of the largest national providers of outcome-based behavioral and mental health services and operates in 23 states and the District of Columbia. Annual revenue was approximately $346 million for 2014. Providence intends to use 50% of the net cash proceeds from the transaction to prepay certain loans under its existing credit facility. The remaining net proceeds may be used for acquisitions, investments in the long-term development of the company’s... Read More »Molina Healthcare Steps Up Its Game
The big buzz in the Managed Care sector is the $37 billion bid from Aetna (NYSE: AET) for Humana Inc. (NYSE: HUM), of course. While that deal is lauded for the Medicare assets it brings to Aetna, Molina Healthcare (NYSE: MOH) continues to beef up on Medicaid assets. Last week it announced two deals, one for the Medicaid assets of MyCare Chicago covering approximately 61,000 enrollees in Cook County, Illinois. The other was for Preferred Medical Plan’s Medicaid assets, serving approximately 25,000 enrollees. These deals come on the heels of its acquisition in May of HealthPlus of Michigan’s MIChild contract, with around 6,000 patients, and the Medicaid contract of HealthPlus Partners,... Read More »Schedule a demo
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