Long Beach-based Molina Healthcare Inc announced Oct. 22 it had sold its Pathways Health and Community Support unit to Century City-based Atar Capital for an undisclosed sum.

The Fortune 500 managed health care services provider for Medicare and Medicaid said it spun off Pathways Health, a provider of home and community-based human services, in order to focus on its health plan business and execution of its margin recovery and sustainability plan.

Atar Capital bought Pathways Health for a “nominal purchase price,” according to Molina. Pathways provides social services and behavior health services to more than 60,000 patients in 17 states and the District of Columbia.

Molina Healthcare, now in the midst of a financial restructuring led by Chief Executive Joseph Zubretsky, served 4.1 million members as of June 30. On Oct. 1, it completed the sale of its Molina Medicaid Solutions to DXC Technology Co. for $231 million.

Atar Capital, a two-year-old global private equity firm founded by Cyrus Nikou, invests in companies in the lower and middle markets, with revenues between $50 million and $1.5 billion.

Health business reporter Dana Bartholomew can be reached at [email protected]. Follow him on Twitter @_DanaBart.