Molina to acquire AgeWell’s Medicaid managed long term care business
Molina Healthcare, a US-based healthcare services provider, has agreed to acquire the Medicaid managed long term care business of AgeWell New York for around $110million.
AgeWell New York, a specialty managed care organization, offers long-term care services in the home and community settings to people who are chronically ill, or disabled.
The company serves such people living in The Bronx, The Bronx, New York (Manhattan), Kings (Brooklyn), Queens, Suffolk, Nassau, and Westchester counties.
AgeWell New York had nearly 13,000 members who were receiving managed long-term support and services (MLTSS) from the company as of 31 August 2021.
The full-year 2020 premium revenue of the specialty managed care organization was around $700 million.
Molina Healthcare said that the transaction will be synergistic to its senior whole health of New York MLTSS business and provides scope to leverage its fixed cost base.
Joe Zubretsky — president and CEO of Molina Healthcare said: “The addition of AgeWell to Molina’s expanding New York footprint is not only complementary to our existing MLTSS business, but also representative of our strategic growth strategy.
“Our highest priority is to serve all Molina members with quality care and compassion, and we anticipate a seamless integration.”
The deal, which is subject to federal and state regulatory approvals, as well as the satisfaction of any other customary closing conditions, is anticipated to close by Q3 2022.