Molina Healthcare, Inc., reportedly has entered into a definitive agreement to acquire the health information management business of Unisys Corporation.

 

The acquisition, which is expected to close in the first half of 2010, is subject to customary regulatory approvals and closing conditions, including receipt of customer consents.

 

Molina officials said that the HIM business provides design, development, implementation and business process outsourcing solutions to state governments for their Medicaid Management Information Systems.

 

MMIS is a core tool used to support the administration of state Medicaid and other healthcare entitlement programs.

 

Company officials said that the HIM business currently holds MMIS contracts with the states of Idaho, Louisiana, Maine, New Jersey and West Virginia, as well as a contract to provide drug rebate administration services for the Florida Medicaid program.

 

Annual revenues of the HIM business are currently approximately $110 million. The approximately 900 employees of the HIM business will become employees of Molina Healthcare upon closing of the transaction.

 

'I am excited about our strategic acquisition of the Unisys (News - Alert) Health Information Management business,' said J. Mario Molina, M.D., president and chief executive officer of Molina Healthcare, in a statement.

 

Molina said that the HIM business will complement the company’s Medicaid health plan business and advance strategic plan by expanding services and product offerings beyond managed care.

 

He said that state governments now, more than ever, need cost-effective programs that help improve the health of Medicaid beneficiaries.

 

“For the first time, Molina Healthcare will have, within a single company, the tools our state partners need to run their Medicaid programs, ranging from full-risk managed care health plans to fee-based information technology solutions,” said Molina.

Molina Healthcare, Inc., is a multi-state managed care organization that arranges for the delivery of health care services to persons eligible for Medicaid, Medicare and other government-sponsored programs for low-income families and individuals.

 

Recently Cisco (News - Alert) announced a telemedicine pilot program initiative with Molina Healthcare, two community health centers in San Diego and the state of California to provide health and wellness services to underserved communities throughout the state.

 

More than 15 sites will be equipped to deliver telemedicine primary and specialty care services using Cisco HealthPresence, a care-at-a-distance technology solution that combines state-of-the-art video, audio and medical information to create a patient care experience similar to the common medical encounter when patients visit their healthcare providers.

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