Walgreens, DaVita end relations with Molina

Medicaid, exchange members affected

Two organizations have ended their business relationship with Molina Healthcare: DaVita Medical Group and the national pharmacy chain Walgreens.

The Long Beach, Calif.-based Molina confirmed the split on Thursday, but would not comment on the reasons behind the contract terminations. Molina is an investor-owned company that serves more than 250,000 members in New Mexico through Medicaid, Medicare and the state health insurance marketplace.

The contract change with DaVita affects Molina’s Medicaid and insurance exchange members, Molina said.

“Molina makes adjustments to its provider and pharmacy networks while ensuring a robust network to accommodate member needs, meet contractual requirements with the state and to provide the most cost-effective, high quality care,” Danielle Smith, a Molina spokeswoman, said in a statement. “Although we were unable to reach an agreement with DaVita Medical Group in Albuquerque, our members still have access to a robust network of health care providers in the community.”

Smith said Molina members will still have access to about 400 chain and independent pharmacies throughout the state.

A Walgreens spokesman confirmed the contract termination and directed questions back to Molina.

A spokesman for DaVita said its contract with Molina will end Dec. 1.

“We want to create meaningful, value-based relationships with payer partners that share our goals and values: high quality, lower cost healthcare for the people of New Mexico,” a DaVita spokesman wrote in a statement. “We strive to create alignment with payer partners around data and administrative support while building respect for our medical group’s priorities.”

DaVita has 17 locations in the Albuquerque metro area and 900 employees.

The company merged with ABQ Health Partners four years ago.