Unisys sells health IT unit to Molina Healthcare

Molina buys Medicaid management unit for $135M

Unisys Corp. has agreed to sell its health information management business to Molina Healthcare Inc. for $135 million in cash, Unisys announced today.

Unisys’ health information management unit provides solutions to state governments for Medicaid administration. It currently has contracts with Idaho, Louisiana, Maine, New Jersey and West Virginia and provides drug rebate administrative services to the Florida Medicaid program, the company said in a news release.

The transaction is expected to close in the first half of 2010 and is subject to customary regulatory approvals, among other terms.

Unisys said its health information management business represents about $110 million in annual revenues. The company recently lost its bid to extend a large information technology contract with the Transportation Security Administration.

Molina is a managed care provider that operates in communities in California, Florida, Michigan, Missouri, New Mexico, Ohio, Texas, Utah and Washington. It contracts with state governments for individuals who quality for Medicaid and state Children’s Health Insurance Program.

Dr. J. Mario Molina, president of Molina Healthcare, said the acquisition of the health information management unit will "complement our Medicaid health plan business and advance our strategic plan by expanding our services and product offerings beyond managed care.’

“Now, more than ever, state governments 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,” Molina said in the news release.

Unisys, of Blue Bell, Pa., ranks No. 32 on Washington Technology’s 2009 Top 100 list of the largest federal government prime contractors.


About the Author

Alice Lipowicz is a staff writer covering government 2.0, homeland security and other IT policies for Federal Computer Week.

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