Molina Healthcare, a provider of managed health care services under the Medicaid and Medicare programs and through the state insurance marketplaces, has divested its behavioral health services arm to streamline its business.
Molina has completed the sale of Pathways Health and Community Support, a provider of home and community-based human services, to global private investment firm Atar Capital.
The company said the move is a part of its renewed focus on its health plan business and continued execution of its margin recovery and sustainability plan. It has identified Pathways as a non-core asset and sold the business for a nominal purchase price.
Pathways provides national home and community-based human services. It offers a full spectrum of social service and behavioral health solutions to over 60,000 children, adults, and families in 17 states and the District of Columbia.
Meanwhile, Atar Capital has appointed Jill Winters, an experienced healthcare management executive, to lead Pathways as its new CEO.
Winters held positions of increased responsibility over almost 20 years at UnitedHealthcare, serving as president of the company's Medicare & Retirement Central Region, as well as chief field executive officer of its Medicare Solutions business. She succeeds Interim CEO Craig Bass, who will remain at Molina Healthcare.
"This acquisition represents an enormous opportunity for us to put our collective experience to work in a critical and fast-growing segment of the healthcare industry," said Cyrus Nikou, founder and managing partner at Atar Capital. "Pathways and its dedicated employees serve a critical role as America grapples with an increasing need for mental and behavioral healthcare services. We look forward to partnering with Jill and the management team to assure that Pathways can provide important care to a larger number of clients."
Molina Healthcare, Atar Capital, M&A, Healthcare, Medicaid, Medicare, Appointment, Jill Winters, US