Molina Healthcare, Inc. (NYSE: MOH) and Memorial Hermann Health Plan, Inc. jointly announced today that Molina Healthcare of Texas, Inc., a wholly-owned subsidiary of Molina Healthcare, has entered into an agreement with Memorial Hermann to enhance access to safe, high-quality care for Medicaid, Medicare and CHIP recipients in the greater Houston area. At the closing of the transaction, Molina’s approximately 14,000 STAR, CHIP and CHIP Perinate members residing in the Harris Service Delivery Area will become members of Memorial Hermann Health Plan. As part of the transaction, Memorial Hermann will become a contracted provider in Molina’s network serving STAR+PLUS, STAR+PLUS MMP and Medicare D-SNP members. The transaction is expected to close during the second quarter of 2017 subject to the receipt of regulatory approvals and the satisfaction of other closing conditions.

“Molina is excited to expand access for our Houston members through the addition of Memorial Hermann’s integrated network of physicians and hospitals,” said Anne Rote, president of Molina Healthcare of Texas. “Molina and Memorial Hermann share a common mission to focus on quality and cost-effective health care for all individuals, and this arrangement will help both organizations achieve that goal.”

“Memorial Hermann Health System has been serving greater Houston as well as Harris and surrounding counties for more than 100 years,” said Dan Styf, CEO of Memorial Hermann Health Plan. “STAR, CHIP and CHIP Perinate members can be assured that our health plan’s alignment with Memorial Hermann, the market leader in Houston, and a wide network of strategic provider partners, will give them direct access to high-quality, easily accessible care.”