Molina Healthcare, Inc. (MOH) spiked 3.83% in yesterday trading. Announced on Tuesday, the company recently concluded transaction acquiring some assets from Passport Health Plan, Inc. The assets acquired by Molina include assets linked with Passport’s Medicaid business. Medicaid was in contract with Commonwealth of Kentucky. The said contract will be renewed to Molina now. Members of Medicaid in Kentucky were previously been provided with Medicaid managed care benefits by Passport. But after the said deal, they will be getting those benefits through Molina Healthcare of Kentucky, Inc. Number of Medicaid members served by Passport in Kentucky till August 1, 2020 was 315,000.
Passport is the brand name popular in Kentucky for providing Medicaid benefits. With the current acquisition deal, Molina will get the Medicaid contract of Passport but will also be allowed to use its brand name. Moreover, Molina will be hiring nearly 500 Kentucky-based employees of Passport and Evolent Health as part of the agreement.
Previously in August, Molina launched MolinaCaes Accord focusing improving health and lives of people to build stronger communities. The Accord was aimed to spend considerable amount of funds to clear many obstacles in way of healthcare facilities. Through the Accord, the company tries to fill the gaps in provision of health care services to underserved populations. The company particularly aims to serve underprivileged communities in areas where it do business.
To clear the obstacle out in the way of delivering health care services, Molina will make use of wide clinical and community resources. It will also utilize an amount of $15 million as committed in the Accord for the same.
The stock was 0.30% up in early trading on Thursday at $193.73. This highlights that stock price is only 2.34% away from its 52-week high. To reach the target price, stock still has to cover a distance of nearly 7%.