Molina, PacifiCare Sign Medi-Cal Accord

Molina Medical Centers and PacifiCare Health Systems have signed a letter of intent to jointly provide managed-care medical services to Medi-Cal beneficiaries in Riverside and San Bernardino counties, industry sources said. The proposal follows federal officials’ decision last month to cut off funding for Molina’s Medi-Cal business because the company does not have the proper mix of patients required under federal law. Long Beach-based Molina hopes the agreement will help it salvage a $1.6-billion state Medi-Cal contract for the two counties that was put in jeopardy by the federal action. The agreement with Cypress-based PacifiCare, the state’s third-largest HMO, would not be a merger but rather an “affiliation,” sources said. It would require state and federal regulatory approval.