Simpson Thacher is advising Bright Health Group, Inc. (“Bright Health”) in connection with its agreement to sell its California Medicare Advantage business, through the sale of its equity interests in Brand New Day and Central Health Plan, to Molina Healthcare, Inc. for a total purchase price of $600 million. Closing remains subject to certain closing conditions, including the receipt of regulatory approvals, and is expected to occur by early 2024.
Bright Health is a technology enabled, value-driven healthcare company that organizes and operates networks of affiliate care providers to be successful at managing population risk. Upon closing, the proceeds of the sale will significantly strengthen Bright Health’s capital position. The company intends to use the proceeds to satisfy its obligations to its bank lenders with the remaining proceeds used towards liabilities in its discontinued ACA insurance business.
The Simpson Thacher team includes Atif Azher, Katherine Krause, Jacob Gindt, Michaela Dion and Britta Vlastelicia (M&A); Bill Brentani and Jonathan Kachiu (Capital Markets); Brian Steinhardt, Darby Tingle and Andrea Valdes (Credit); Sandy Qusba and David Zylberberg (Bankruptcy); Vanessa Burrows and Nawa Lodin (Healthcare Regulatory); Russell Light, Sophie Staples and Lina Pan (Tax); Tristan Brown, Jeffrey Penn and Damian Gallagher (ECEB); Sara Razi, Karen Kazmerzak and Daniel Owsley (Antitrust); Krista McManus (Real Estate); Steven DeLott (Insurance); Melanie Jolson and Rachelle Broida (IP); and Toby Chun and Deepa Sarkar (EHS).