Delta Dental of California has sold a $152.4 million equity stake investment back to healthcare insurer Moda Holdings Group, the company said Sept. 27.
Delta Dental made the investment in 2019 for a 49.5 percent share in Moda Partners.
According to a Sept. 27 report by The Lund Report, the investment was made at a time when Moda was caught in a legal battle with the federal government about Medicaid payments and reported $227 million in losses in 2018.
Both companies said the investment met the strategic needs of both groups.
"We greatly appreciate the long-term partnership we have shared with our friends and colleagues at Delta Dental of California," said Moda President and CEO Robert Gootee. "Their strategic investment of a few years ago helped us sustain and expand our diverse strategies at a critical time. The continuing evolution of the healthcare landscape surely will afford us many fresh strategic opportunities for continued collaboration going forward, while at the same time allowing each of us to focus on our primary initiatives in our strategic markets."