Molina Healthcare Expands in Upstate New York

Molina Healthcare Expands in Upstate New York

by | Oct 21, 2019 2:25 pm | Managed Care

Molina Healthcare (NYSE: MOH) has been off the acquisitions circuit for some time, as management issues were being worked out. The insurer’s last completed deal was announced in April 2016, in fact. That transaction targeted Universal American’s (NYSE: UAM) Total Care Medicaid plan, a prepaid health services plan providing health care coverage to approximately 39,000 members under the Medicaid and Child Health Plus programs in the three upstate New York counties of Cortland, Onondaga and Tompkins. The sale netted Universal American $41.3 million. In mid-October, Molina broke its streak with the acquisition of certain Medicaid assets of YourCare Health Plan, Inc., a... Read More »
Stat of the Week: CVS’s 10.9x EBITDA

Stat of the Week: CVS’s 10.9x EBITDA

by | Oct 27, 2017 6:50 pm | Managed Care

If you can’t beat ’em, buy ’em. Or be bought. That’s the path Aetna (NYSE: AET) is taking, perhaps, as the healthcare industry reacts to news that the health insurer is in talks with CVS Health Corp. (NYSE: CVS) to be acquired for $200 per share, approximately $66 billion. The deal may never be consummated, but it’s gotten a lot of analysts weighing in on the paradigm shift it would bring to the industry. Frank Morgan of RBC Capital Markets gave the nod to vertical integration between managed care organizations, pharmacy benefit managers (PBMs) and providers, given that the managed care companies’ push for horizontal integration in 2013 ended badly... Read More »

Managed Care Deals Deflate in 2016

by | Dec 21, 2016 8:00 am | Managed Care

As the end of the year approaches, the Managed Care sector hasn’t changed its sluggish pace. Just 20 deals have been announced through mid-December, a 56% drop from 2015’s total of 45 transactions. Spending is another matter. As of this writing, nearly $1.7 billion has been committed to financing the 20 deals. There is no way to match last year’s outrageous total of $100.4 billion, courtesy of the two super-mega-deals from Aetna (NYSE: AET) and Anthem (NYSE: ANTM), made for Humana (NYSE: HUM, $37 billion) and Cigna (NYSE: CI, $54 billion), respectively. You’ve been living under a rock if you haven’t heard that the Justice Department challenged those mergers back in... Read More »

WellCare Health Adds Universal American for $800 Million

by | Nov 22, 2016 7:26 pm | Managed Care

WellCare Health Plan (NYSE: WCG) breathed a little life into the lethargic Managed Care sector, which has experienced a lull in M&A this year. WellCare provides government-sponsored managed care services, and its target, Universal American Corp. (NYSE: UAM), provides health insurance and managed care products and services to Medicare and Medicaid customers in the United States. The purchase price is $800 million, or $10.00 per share, representing a 34% premium to Universal American’s 60-day volume-weighted average closing stock price as of November 16, 2016, and includes the retirement of Universal American’s preferred shares and its convertible debt. WellCare expects the... Read More »

Molina Adds Aetna & Humana MA Assets

by | Aug 2, 2016 2:18 pm | Managed Care

Aetna (NYSE: AET) and Humana (NYSE: HUM) remain undaunted by the pending litigation from the U.S. Department of Justice, challenging their proposed $37 billion merger. The two companies announced they would sell certain Medicare Advantage (MA) assets to Molina Healthcare (NYSE: MOH) for a total estimated $117 million in cash for both transactions. The price is based on the estimated number of members in the plans involved in the transactions. Of course, this deal hinges on the successful completion of Aetna’s acquisition of Humana, CMS approvals and actions, and the customary closing conditions, including state and other regulatory approvals. If successful, Molina is expected to add... Read More »