Bright Health Completes Sale of California Medicare Advantage Business to Molina Healthcare

Strategic Insights -

Bright Health Group, Inc., a technology-enabled, value-driven healthcare company, has successfully completed the sale of its California Medicare Advantage business, Brand New Day and Central Health Plan, to Molina Healthcare, Inc. Effective January 1, 2024, the sale has enabled Bright Health to eliminate its secured debt and provide a solid foundation for its continuing business, NeueHealth. The transaction will allow the company to focus on making high-quality healthcare accessible and affordable to all populations.

Key Takeaways:

  • Bright Health has completed the sale of its California Medicare Advantage business to Molina Healthcare, effective January 1, 2024.
  • The sale has eliminated Bright Health's secured debt and provided a solid foundation for the company's continuing business, NeueHealth.
  • Bright Health expects to drive strong results in its NeueHealth business and reaffirms its expectation to be profitable on an Adjusted EBITDA basis in 2024.
  • The company will 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.
  • Mike Mikan, President and CEO of Bright Health, expressed optimism about the company's future prospects and its ability to partner with providers and payors to deliver a more seamless, coordinated care experience.
  • Bright Health expects to focus on making high-quality healthcare accessible and affordable to all populations.

Statistics:

  • Effective January 1, 2024, Bright Health has eliminated its secured debt.
  • The sale of its California Medicare Advantage business is expected to provide a solid foundation for Bright Health's continuing business, NeueHealth.
  • Bright Health expects to drive strong results in its NeueHealth business.
  • The company reaffirms its expectation to be profitable on an Adjusted EBITDA basis in 2024.

Sources:

  • Bright Health Group, Inc. (2024, January 1). Bright Health Completes Sale of California Medicare Advantage Business to Molina Healthcare.
  • Moelis & Company LLC.
  • Simpson Thacher & Bartlett LLP.