Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered into a definitive agreement to acquire Abri Health Plan, a provider of Medicaid managed care services to BadgerCare Plus and SSI Managed Care enrollees in Wisconsin. The purchase price for the acquisition is expected to be approximately $16 million, subject to adjustments, and will be funded with available cash and/or the Company's credit facility. Subject to regulatory approvals and the satisfaction of other closing conditions, the closing of the transaction is expected to occur by August 31, 2010.
“We are excited about this opportunity to partner with both the State of Wisconsin and the local provider community”
"We are excited about this opportunity to partner with both the State of Wisconsin and the local provider community," said J. Mario Molina, M.D., president and chief executive officer of Molina Healthcare, Inc. "Once this transaction closes, our company will provide health plan services in ten Medicaid markets throughout the country, we will be further diversified, and our Wisconsin health plan will have significant potential for future growth. Molina Healthcare is dedicated to providing quality patient care while supporting the crucial doctor-patient relationship."
Abri Health Plan currently serves Medicaid beneficiaries in 23 counties in Wisconsin. In April 2010, Abri received a notice of intent to award a new contract to provide Medicaid managed care services to BadgerCare Plus enrollees in Wisconsin's southeast region (Kenosha, Milwaukee, Ozaukee, Racine, Washington, and Waukesha counties), to be implemented between September 1 and November 1, 2010. Abri anticipates that its membership will grow as a result of this new contract.
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