Bright Health Group Closes the Sale of its California Medicare Advantage Business to Molina Healthcare
02 Januar 2024 - 10:30PM
Business Wire
- Completes final repayment on secured credit facility
eliminating the Company’s secured debt
- Further focuses on increasing access to value-driven healthcare
for all populations across the ACA Marketplace, Medicare, and
Medicaid through its continuing business, NeueHealth
- Reaffirms expectation for Adjusted EBITDA profitability in
2024
Bright Health Group, Inc. (“Bright Health” or the “Company”)
(NYSE: BHG), the technology enabled, value-driven healthcare
company, today announced that it has successfully completed the
sale of its California Medicare Advantage business, Brand New Day
and Central Health Plan, to Molina Healthcare, Inc. (“Molina”). The
sale closed, effective as of January 1, 2024.
Concurrent with the closing of the sale, the Company also made
the final repayment on its amended credit facility with J.P.
Morgan, eliminating its secured debt. The remaining proceeds of the
sale are expected to provide a solid foundation for the Company to
continue to advance its continuing business, NeueHealth, in 2024
and beyond.
“We are pleased to announce the close of this transaction as it
meaningfully improves our capital position and allows us to focus
on making high-quality healthcare accessible and affordable to all
populations,” said Mike Mikan, President and CEO of Bright Health.
“We see tremendous opportunities in our NeueHealth business and
look forward to continuing to partner with providers and payors to
deliver a more seamless, coordinated care experience for health
consumers.”
Bright Health expects to drive strong results in its NeueHealth
business, reaffirming its expectation to be profitable on an
Adjusted EBITDA basis in 2024. The Company expects to share its
full outlook for 2024 on its Fourth Quarter earnings call.
Moelis & Company LLC served as Bright Health’s financial
advisor and Simpson Thacher & Bartlett LLP acted as Bright
Health’s legal advisor in connection with the sale.
About Bright Health Group
Bright Health Group is a technology enabled, value-driven
healthcare company that organizes and operates networks of
affiliate care providers to be successful at managing population
risk. We focus on serving aging and underserved consumers that have
unmet clinical needs through our value-based, consumer-driven care
model in Florida, Texas and California, some of the largest markets
in healthcare where 26% of the U.S. aging population call home. We
believe everyone should have access to personal, affordable, and
high-quality healthcare. Our mission is to Make healthcare right.
Together. For more information, visit
www.brighthealthgroup.com.
Forward-Looking Statements
Statements made in this release that are not statements of
historical fact, including statements about our beliefs and
expectations, are forward-looking statements and should be
evaluated as such. Forward-looking statements include information
concerning possible or assumed future results of operations,
including descriptions of our business plan and strategies. These
statements often include words such as “anticipate,” “expect,”
“plan,” “believe,” “intend,” “project,” “forecast,” “estimates,”
“projections,” “outlook,” “ensure,” and other similar expressions.
These forward-looking statements include any statements regarding
our plans and expectations with respect to Bright Health Group,
Inc. Such forward-looking statements are subject to various risks,
uncertainties and assumptions. Accordingly, there are or will be
important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. Factors
that might materially affect such forward-looking statements
include: our ability to continue as a going concern; our ability to
comply with the terms of our credit facility, including financial
covenants, both during and after any waiver period, and/or obtain
any additional waivers of any terms of our credit facility to the
extent required; our ability to receive the remaining proceeds from
the sale of our Medicare Advantage business in California in a
timely manner; our ability to obtain any short or long term debt or
equity financing needed to operate our business; our ability to
quickly and efficiently complete the wind down our IFP businesses
and MA businesses outside of California, including by satisfying
liabilities of those businesses when due and payable; potential
disruptions to our business due to corporate restructuring and any
resulting headcount reduction; our ability to accurately estimate
and effectively manage the costs relating to changes in our
businesses offerings and models; a delay or inability to withdraw
regulated capital from our subsidiaries; a lack of acceptance or
slow adoption of our business model; our ability to retain existing
consumers and expand consumer enrollment; our and our Care
Partner’s abilities to obtain and accurately assess, code, and
report risk adjustment factor scores; our ability to contract with
care providers and arrange for the provision of quality care; our
ability to accurately estimate our medical expenses, effectively
manage our costs and claims liabilities or appropriately price our
products and charge premiums; our ability to obtain claims
information timely and accurately; the impact of any pandemic or
epidemic on our business and results of operations; the risks
associated with our reliance on third-party providers to operate
our business; the impact of modifications or changes to the U.S.
health insurance markets; our ability to manage the growth of our
business; our ability to operate, update or implement our
technology platform and other information technology systems; our
ability to retain key executives; our ability to successfully
pursue acquisitions and integrate acquired businesses; the
occurrence of severe weather events, catastrophic health events,
natural or man-made disasters, and social and political conditions
or civil unrest; our ability to prevent and contain data security
incidents and the impact of data security incidents on our members,
patients, employees and financial results; our ability to comply
with requirements to maintain effective internal controls; our
ability to adapt to the new risks associated with our ACO Reach
businesses, including any unanticipated market or regulatory
developments; and the other factors set forth under the heading
“Risk Factors” in the Company’s reports on Form 10-K, Form 10-Q,
and Form 8-K (including all amendments to those reports) and our
other filings with the SEC. Except as required by law, we undertake
no obligation to update publicly any forward-looking statements for
any reason after the date of this release to conform these
statements to actual results or changes in our expectations.
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version on businesswire.com: https://www.businesswire.com/news/home/20240102567029/en/
Investor Contact: IR@brighthealthgroup.com
Media Contact: media@brighthealthgroup.com
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