Molina Healthcare has announced a $135 million deal to acquire the health information management business of the Unisys Corporation.
Officials of the Long Beach, Calif.-based healthcare organization, which serves more than 1 million members in 10 states, said the transaction is expected to close in the first half of 2010. Approximately 900 Unisys employees will become employees of Molina Healthcare at that time.
"The HIM business will complement our Medicaid health plan business and advance our strategic plan by expanding our services and product offerings beyond managed care," said Molina's president and CEO, J. Mario Molina, MD.
The Unisys HIM business provides design, development, implementation and business process outsourcing solutions to state governments for their Medicaid Management Information Systems, a core tool used to support the administration of state Medicaid and other healthcare entitlement programs. The company holds MMIS contracts with daho, Louisiana, Maine, New Jersey and West Virginia, as well as a contract to provide drug rebate administration services for the Florida Medicaid program.
According to Molina officials, annual revenues of the HIM business are approximately $110 million.
"Now, more than ever, state governments need cost-effective programs that help improve the health of Medicaid beneficiaries," said Molino. "For the first time, Molina Healthcare will have, within a single company, the tools our state partners need to run their Medicaid programs, ranging from full-risk managed care health plans to fee-based information technology solutions."
Unisys officials said the glbal company, which has an American headquarters in Blue Bell, Pa., will provide certain transitional and technology support services to Molina Healthcare for up to one year.
The deal comes on the heels of a collaboration announced on Jan. 15 between Molina and Cisco on a new telemedicine pilot program with southern California.