Managed healthcare company Molina Healthcare Inc., has signed a $42 million deal to acquire Florida NetPASS, LLC, to further extend itself into the Medicaid market.
In connection with the transaction, Molina Healthcare of Florida, Inc., a licensed Florida health plan and subsidiary of Molina Healthcare, Inc., will enter into a new managed care contract with the Florida Agency for Health Care Administration (AHCA).
The deal is expected to close in the first quarter of 2009.
Florida NetPASS is a "fee-for-service/information-based" medical management model, providing physicians with clinical, pharmaceutical, diagnostic and financial information about their patients. FNP provides services to 58,000 Florida MediPass members in southern and central Florida.
FNP began as a Medicaid Provider Access System (MediPass) pilot project in 2001, which was designed to develop and implement new and innovative care management approaches.
"We are excited about this opportunity to partner with both the state of Florida and the local Florida NetPASS provider community," said J. Mario Molina, MD, president and chief executive officer of Molina Healthcare, Inc. "Once this transaction closes, Molina Healthcare will be in five of the top 10 Medicaid markets in the country, we will be further diversified, and our Florida health plan will have significant potential for future growth. Just like Florida NetPASS, Molina Healthcare is dedicated to providing quality patient care while supporting the crucial doctor-patient relationship. We look forward to making the transition of Florida NetPASS members to Molina as seamless as possible while maintaining the same covered benefits."
Of the approximately 58,000 members served by Florida NetPASS, 42,000 are enrolled in the state's Temporary Aid for Needy Families (TANF) program, and the other 16,000 are enrolled in the state's Aged, Blind or Disabled (ABD) program.