Molina Healthcare enters South Carolina


Molina Healthcare of South Carolina, a wholly owned subsidiary of Molina Healthcare, has entered into a definitive agreement with Community Health Solutions of America (CHS) to acquire certain assets of CHS relating to its South Carolina Solutions (SCS) business.

“We are very excited to participate in South Carolina’s Medicaid managed care program,” said Dr J. Mario Molina, president and chief executive officer of Molina Healthcare.

“This transaction positions our South Carolina health plan for growth in advance of the state’s rollout of its new Medicaid managed care program. We look forward to partnering with both the state of South Carolina and the local provider community to continue providing quality patient-focused healthcare.”

Pursuant to the terms of the agreement, CHS has agreed to transfer to Molina Healthcare the Medical Homes Network (MHN) membership of CHS, except for those members enrolled in the Medically Complex Children’s Waiver component of the MHN program.

Such transfer will be contingent on Molina’s successful receipt of an HMO license from the South Carolina Department of Insurance, the award to Molina Healthcare of a full-risk Medicaid managed care contract by the South Carolina Department of Health and Human Services, and the state’s conversion of the MHN program to a full-risk Medicaid managed care program. Each of these three conditions is expected to be satisfied by January 2014.

“We are confident Molina will continue to improve member health outcomes while managing costs for the state of South Carolina,” said Dale Schmidt, chairman and chief executive officer of CHS. “CHS will continue to serve South Carolina’s most fragile children through the Medically Complex Children’s Waiver program, and we look forward to focusing our efforts on growth opportunities in other states.”

Of the approximately 150,000 Medicaid members currently served by SCS, approximately 136,000 members are enrolled in the State of South Carolina’s Temporary Aid for Needy Families (TANF) and Supplemental Security Income (SSI) programs. Approximately 14,000 members are currently enrolled as voluntary dual eligible members as part of the MHN and are not currently part of the full-risk program in the state.

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