Molina Healthcare has acquired Providence Human Services and Providence Community Services, expanding its behavioral and mental health services, the Long Beach-based company announced Monday.
The completed acquisition of the two entities—formerly part of The Providence Service Corp. (PSC)—will allow them to operate as a wholly-owned subsidiary of Molina Healthcare, under the PathwaysSM brand name, Molina Healthcare officials stated.
With 6,800 employees and operations in 23 states and the District of Columbia, officials said they represent one of the largest national providers of accessible, outcome-based behavioral and mental health services.
“We are excited to welcome our PHS and PCS colleagues to Molina,” said Dr. J. Mario Molina, president and CEO of Molina Healthcare. “The acquisition expands our ability to more closely integrate our members’ physical and behavioral health benefits and manage care in a more effective manner, while directly influencing outcomes for the better. Molina and Pathways share a common strategic vision and philosophy, making them well-aligned to focus on delivering quality health care services to people receiving government assistance.”
The divested businesses generated revenue of about $346 million in 2014 and $176 million in the first half of 2015, PSC officials said.
Molina paid The Providence Service Corp, $200 million upon closing.