Molina Healthcare has called off its $50 million purchase of Illinois-based managed care organization NextLevel Health Partners.
In a filing with the Securities and Exchange Commission Tuesday, Molina said it was terminating the acquisition agreement due to NextLevel’s “stated unwillingness to close” in accordance with the deal.
“Molina Healthcare confirms that it recently terminated its agreement to purchase NextLevel Health due to the seller’s unwillingness to perform,” a spokesperson for the insurer said.
The deal, which was announced in January, would have added about 50,000 Medicaid and managed long-term care members in Cook County, Illinois. The deal was expected to close early this year.
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Molina said in the January announcement that NextLevel’s projected premium revenue was $270 million in 2019. We’ve reached out to NextLevel and will update when we hear back.
The deal was Molina’s latest to expand its footprint. The insurer gets most of its business in government plans.
Molina purchased New York-based YourCare Health Plan’s Medicaid business in a $40 million deal, adding 46,000 members to its rolls. The insurer also nabbed a Medicaid contract in Kentucky.