Molina Healthcare of California, a subsidiary of Molina Healthcare, Inc. (NYSE: MOH), today announced that it has closed on its previously announced acquisitions of the Medi-Cal (Medicaid) and Healthy Families (California's State Children's Health Insurance Program) contracts of Sharp Health Plan and Universal Care. The two transactions had previously been approved by the California Department of Managed Health Care, the California Department of Health Services, the California Managed Risk Medical Insurance Board, and Healthy San Diego.
As a result of the acquisitions, Molina Healthcare of California has added approximately 59,000 Medi-Cal and 24,000 Healthy Families members to its California enrollment and has expanded Molina's geographical presence within California by adding San Diego County to the counties served.
"We are pleased to welcome our new members and look forward to working with the provider community in San Diego County," said Joann Zarza-Garrido, Chief Executive Officer of Molina Healthcare of California. "We would also like to thank the Department of Managed Health Care, the Department of Health Services, the Managed Risk Medical Insurance Board, and Healthy San Diego for their comprehensive and expeditious review, and we look forward to continuing to work closely with them."
The acquisitions are anticipated to contribute combined annualized revenues in the range of $90 million to $95 million. The Company expects no accretion to earnings in 2005 from these transactions, but expects accretion to earnings in the range of $0.06 to $0.08 per share in 2006.
About Molina Healthcare, Inc.
Molina Healthcare, Inc. (NYSE:MOH), the parent company of Molina Healthcare of California, is a multi-state managed care organization that arranges for the delivery of healthcare services to persons eligible for healthcare benefits through government-sponsored programs for low-income families and individuals, such as Medicaid and the State Children's Health Insurance Program, or SCHIP. Molina Healthcare, Inc. currently operates health plans in California, Indiana, Michigan, New Mexico, Utah, and Washington. Molina Healthcare of California also operates 21 primary care clinics in California. More information on Molina Healthcare, Inc. and its subsidiary, Molina Healthcare of California, can be obtained at www.molinahealthcare.com.
About Sharp Health Plan
Established and licensed in 1992, Sharp Health Plan is a subsidiary of Sharp HealthCare, San Diego's most comprehensive healthcare delivery system, recognized for clinical excellence in cardiac care, women's services, cancer, orthopedics, multi-organ transplants, rehabilitation and behavioral health services. To learn more about Sharp, visit www.sharp.com.
About Universal Care, Inc.
Established in 1983, Universal Care provides healthcare programs to individuals and employer groups of all size. Additionally, Universal Care provides services to individuals who are eligible for government-sponsored health programs. To learn more about Universal Care, visit www.universalcare.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain "forward-looking statements." All of the Company's forward-looking statements are based on current expectations and assumptions that are subject to numerous known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially. Such risk factors include: the Company's ability to successfully integrate its acquisitions, the Company's ability to accurately predict and effectively manage health benefits and other operating expenses, potential reductions in funding for Medicaid and other government-sponsored healthcare programs, the successful renewal of the Company's government contracts, the Company's ability to accurately estimate incurred but not reported medical costs, the implementation of announced rate increases, changes in federal or state laws or regulations or the interpretation thereof, and other risks and uncertainties as detailed in the Company's reports and filings with the Securities and Exchange Commission and available on its website at www.sec.gov. The Company disclaims any intent or obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
SOURCE: Molina Healthcare, Inc.
Molina Healthcare, Inc.
Juan Jose Orellana, 562-435-3666