Delta Dental of California and Moda announce strategic partnership to drive integrated health care solutions
Delta Dental to make $155 million equity investment for 50 percent holding in Moda
August 31, 2018
San Francisco and Portland, Oregon — Delta Dental of California and Moda announced today that they have entered into a definitive agreement for a strategic partnership. Delta Dental of California’s $155 million equity investment in Moda’s medical and pharmacy lines of business provides it with a 50 percent holding in Moda, enabling it to diversify its offerings to offer integrated health care solutions to select customers.
"We're pleased to expand our relationship with our trusted partner Moda as we grow our capabilities within the evolving health care delivery system," says Tony Barth, president and CEO of Delta Dental of California. "Our strategic plan calls for expanding beyond stand-alone dental benefits through bundled offerings with powerful health and wellness brands. Today, we're taking an important step on that journey."
This partnership comes naturally to the two companies as they have a longstanding relationship of more than 60 years. Starting in 1955, Delta Dental of California and Oregon Dental Service, Moda's parent corporation, worked with dentists in California, Oregon and Washington to form the first independent pre-paid U.S. dental plans that later became the Delta Dental Plans Association.
“Our colleagues from California understand our culture and share our core values,” says Robert Gootee, president and CEO of Moda. “By making this major investment, Delta Dental of California is helping Moda grow as we help them diversify.”
As the health care delivery system continues to evolve, this partnership brings each company the ability to provide broader offerings of health and wellness benefits to people in the communities they serve.
Moda will continue to operate as an Oregon-based independent insurer, headquartered in Portland. Closing of the transaction is subject to review and approval by Oregon's Department of Consumer and Business Services.
About Delta Dental
Delta Dental of California, Delta Dental Insurance Company, Delta Dental of Pennsylvania, Delta Dental of New York, Inc., and their affiliated companies together provide dental benefits to 36.5 million people in 15 states, the District of Columbia and Puerto Rico. All are part of the Delta Dental Plans Association, based in Oak Brook, Ill., the not-for-profit national association of the 39 independent Delta Dental member companies that collectively cover more than 78 million people nationwide.
Founded in 1955, Oregon-based Moda is a company committed to building healthier communities. In addition to its more than 1 million dental lives, Moda has 330,000 members in its medical plans and more than 1 million members in its stand-alone pharmacy segment. The Moda family of enterprises includes Moda Health, Delta Dental Plan of Oregon/Alaska, ODS Community Dental, Eastern Oregon Coordinated Care Organization, Ardon Health, BenefitHelp Solutions, Astra Practice Partners, Dental Commerce Corporation, Healthy Grid, Arrow Dental, and PropacPayless Pharmacy.