Molina Healthcare of Illinois is acquiring certain assets of the Medicaid business of MyCare Chicago, according to Molina.
Financial terms were not disclosed, but a statement from the company said Molina Healthcare will fund the transaction with available cash on hand.
The deal expands parent company Molina Healthcare Inc. of California, into the Chicago market.
Molina Healthcare of Illinois will receive the right to assume MyCare Chicago's Medicaid members in Cook County, Illinois, as well as certain assets related to the operation of the Medicaid business.
The deal, subject to regulatory approvals and other closing conditions, is expected to occur during the fourth quarter of 2015.
MyCare Chicago is among 11 accountable care entities operating in Illinois. It is owned and operated by several local Chicago hospitals and health centers.
It will continue to operate its provider network and coordinate care for certain enrollees through a services agreement with Molina Healthcare of Illinois.
Mark Newton, chairman of the MyCare Chicago board and president of Swedish Covenant Hospital said, "The agreement between MyCare Chicago and Molina Healthcare of Illinois provides the resources needed to invest in advanced information systems and patient centered care coordination systems that improve population health status and lower costs."
Molina Healthcare of Illinois operates Medicaid and Medicare health plans and participates in the Medicare-Medicaid Alignment Initiative in the central part of the state.
Molina Healthcare, Inc., of southern California, is a Fortune 500 company providing managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces. It operates health plans in 11 states and Puerto Rico.