We just received word that there's a mandatory meeting tomorrow morning for all MMS employees which is being positioned as an "exciting announcement". Anyone want to venture a guess?
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@TQfDDRF-2vsf Way to go Molina!
Best part is that MMS employees continue to get their current 'bloated' salaries and will continue to milk the states for low quality maintenance work that have been doing for past several years! Have fun my dear MMS colleagues, you are set for life, enjoy!!
Anyone know how this affects the clinical division?
June 27, 2018 07:00 AM Eastern Daylight Time
LONG BEACH, Calif.--(BUSINESS WIRE)--Molina Healthcare, Inc. (NYSE: MOH) today announced that it has entered into a definitive agreement to sell its wholly owned subsidiary, Molina Medicaid Solutions (MMS), a Medicaid management information systems (MMIS) business, to DXC Technology (NYSE: DXC). The divestiture, which is expected to close in the third quarter of this year, is subject to the satisfaction of customary closing conditions and the receipt of certain third party consents and regulatory approvals.
“The sale of Molina Medicaid Solutions will give us the flexibility to invest and refocus resources in our core health plan business,” said Joe Zubretsky, president and chief executive officer for Molina Healthcare, Inc. “We are confident that DXC will be an excellent partner for Medicaid agencies, providers, and employees moving forward, and that this transaction represents an opportunity for MMS to grow and unlock value in its business.”
“For many years DXC Technology’s goal has been to provide the highest quality services to state agencies in the administration of Medicaid programs, including business processing, information technology development, and administrative services,” said Mike Lawrie, DXC Technology chairman, president and CEO. “Both MMS and DXC Technology have proven track records and a shared commitment to these important programs. Together, our deep experience and technology expertise can bring new benefits to state agencies and Medicaid recipients.”
The net purchase price for the equity interests of MMS is estimated to be approximately $220 million after certain adjustments, and the transaction is expected to close in the third quarter of this year.
MMS provides support to state Medicaid agencies in the administration of the states’ Medicaid programs, including business processing, information technology development, and administrative services. MMS is under contract with Medicaid agencies in six states and the U.S. Virgin Islands.
DXC Technology provides health and human services to government agencies across the United States through more than 8,000 professionals, offering fiscal agent services, MMIS, program integrity, care management, immunization registry, and eligibility services.
Molina was advised on financial matters by BofA Merrill Lynch and on legal matters by Orrick, Herrington any conditions imposed on the parties in connection with consummating the transaction described herein; the ability of the parties to satisfy other conditions to closing; and the possibility that the transaction will not be completed on a timely basis or at all. Additional information regarding the risk factors to which we are subject is provided in greater detail in our periodic reports and filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. These reports can be accessed under the investor relations tab of our website or on the SEC’s website at sec.gov. Given these risks and uncertainties, we cannot give assurances that our forward-looking statements will prove to be accurate, or that any other results or events projected or contemplated by our forward-looking statements will in fact occur, and we caution investors not to place undue reliance on these statements. All forward-looking statements in this release represent our judgment as of the date hereof, and we disclaim any obligation to update any forward-looking statements to conform the statement to actual results or changes in our expectations that occur after the date of this release.
Pathways next to be sold
And the answer is DXC. Email sent to employees this morning. Transfer expected in third quarter this year. The plan is that MMS will remain completely independent of DXC.
Email just went out to All.
What about more layoffs?
Koolaid drinkers loving them some JZ ... going to fix everything. We are out of discovery period...on to planning.
Thanks for asking, I was just going to ask about the meeting. Yeah it's a matter of time.
What time is this meeting happening? I hope someone posts about it afterwards. This is interesting. I'm sure they are selling MMS. Which is the second step in the dismantling of the Molina empire. The first being selling the clinics. Anyone who thinks that this company isn't being sold off, bit by bit, is drinking the kool aid.
Yes, I heard that it will be part of conduent firm, one that employees indian mgmt to take advantage of offshore for cost and do not care for any quality output. All MMS hardwork will be going down the drain.
Rumor is that it is dxc technology
Yup....it's SUPER exciting that MMS folks won't be working for Molina any longer. That s---s.
MMS is getting sold ..news coming this week.