Molina Healthcare is buying the Medicaid assets of one of Henry Ford Health System's health plans. The news comes a week after the state denied Henry Ford's appeal of new Medicaid contracts.
Henry Ford planned on divesting most of its Health Alliance Plan (HAP) Midwest Health Plan if the state refused to change course on its new managed-care contracts. Henry Ford's HAP Midwest covers 88,000 Medicaid patients in two populous regions around Detroit, where Henry Ford is based, but HAP Midwest did not retain the business when the state released new contracts in October. Last week, Michigan officials refused to reconsider the decision, ending hopes that Henry Ford could keep the business.
Long Beach, Calif.-based Molina, however, won contracts for those two regions, among others. Molina covers about 340,000 Michigan Medicaid patients.
“Although we are disappointed by the state's decision to reduce the number of Medicaid plans in regions 9 and 10, we are grateful for the opportunity to transition our members to Molina, a quality plan with a similar commitment to the Detroit market and a good working relationship with Henry Ford Health System,” Mary Ann Tournoux, HAP Midwest's interim president and CEO, said in a news release.
It's the eighth transaction of the year for Molina, which has eagerly scooped up smaller Medicaid plans while its larger competitors wrestle to get federal and state approval for their larger mergers.
Terms of the deal weren't disclosed, but it is expected to close by the start of the new year.
