LOUISVILLE, Ky. (AP) - Passport Health Plan, a Kentucky-based Medicaid managed care company, has agreed to be purchased by a competitor in a deal expected to preserve hundreds of jobs.
Molina Healthcare of California announced Friday that the purchase price for Passport is about $20 million and that it will fund the purchase with cash on hand, the Courier Journal reported.
The announcement comes six weeks after Passport was shut out of a new state Medicaid contract - which could have spelled the demise of the Louisville-based company. Molina was one of the successful bidders for Kentucky’s multi-billion-dollar Medicaid plan that covers 1.4 million people.
The companies described the transaction as a move that would save most of the jobs of Passport’s 600 employees, allow it to keep the “brand” of Passport’s name and preserve stability for the 320,000 people Passport serves, the majority in the Louisville region.
The agreement is subject to regulatory approval.
Molina serves more than 3 million customers in 14 states, focusing on government health plans including Medicare and Medicaid, according to its website,
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