Shares of Molina Healthcare, Inc. MOH increased 2.33% in the last trading session to close at $67.17 after the company’s subsidiary, Molina Healthcare of Illinois, Inc., entered into an agreement to acquire some Medicaid assets from Loyola Physician Partners, LLC in the State of Illinois. Additionally, Molina Healthcare of Illinois will transition Loyola’s Medicaid members in Cook County.
The deal is pending regulatory approvals and is slated to close in the first quarter of 2016. It will be funded by Molina Healthcare Illinois’ available cash in hand.
The agreement has been strongly appreciated by the Illinois Department of Healthcare and Family Services. This is because the deal is a fiscally sustainable approach toward providing health care and will likely enhance the quality of care provided.
Molina Healthcare of Illinois is focused on expanding its services in Chicago. The subsidiary’s association with Loyola, which already has a strong provider network, is expected to boost Molina’s Medicaid program in Illinois. Loyola will provide the members a primary care medical home, specialty care, and care coordination.
However, Molina is not the only stock seeking expansion through acquisitions. Another health maintenance organization (HMO), Humana, Inc. HUM has partnered with one of the leading cloud-based health exchange and benefits administration technology platforms, PlanSource in Sep 2015, to reach out to more customers. The transaction is an amalgamation between innovative technology and superior quality health benefits.
Molina Healthcare currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the HMO space include Aetna, Inc. AET and Centene Corp. CNC. Both stocks hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment