Molina Healthcare Adds to Mental Health Services Portfolio

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Molina Healthcare Inc. is continuing its buying spree. The Long Beach managed care provider acquired two mental health subsidiaries of Tucson, Ariz.’s Providence Service Corp. for about $200 million.

The deal, announced Thursday, will pay cash for Providence Human Services and Providence Community Services. The Human Services division provides behavioral and mental health counseling in 23 states and the District of Columbia and generated about $346 million in revenue last year.

Both subsidiaries offer mental health and social services, predominately through Medicaid programs, and as an alternative to traditional higher-cost institutional care.

“Providing access to these types of quality services is imperative, as we increasingly arrange for health care services for patients with complex needs,” Molina Chief Executive J. Mario Molina said in a statement.

The transaction is expected to close during the fourth quarter.

The deal comes on the heels of Molina’s summer announcements to buy Medicaid businesses in Florida, Michigan and Chicago.

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