Molina Healthcare Expands San Diego County Business
Long Beach-based Molina Healthcare of California this summer added 83,000 members in San Diego County, including 71,000 members acquired for $25 million from Sharp HealthCare when Sharp ended its Medi-Cal health plan, the San Diego Business Journal reports. Molina also paid $6.2 million to acquire 12,000 members from Signal Hill-based Universal Care.
Molina now manages benefits for the second-largest group of Medi-Cal and Healthy Families beneficiaries in San Diego County, where it "maintained virtually no presence" prior to this summer, according to the Business Journal. Molina specializes in managing health care for low-income patients who qualify for government programs, while Sharp and Universal provide health care services to both government and commercial markets.
Tom Gehring, CEO of the San Diego County Medical Society, said it is not clear how Molina's purchase will affect the government health plan market in the county.
Molina expects the additional members to increase revenue by $90 million to $95 million (Weeks, San Diego Business Journal, 9/5).