EXHIBIT 10.18
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS DOCUMENT.
PORTIONS FOR WHICH CONFIDENTIAL TREATMENT IS REQUESTED ARE DENOTED BY "[*]".
CONFIDENTIAL INFORMATION OMITTED HAS BEEN FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION.
AMENDMENT OF
HEALTH NET-MOLINA LOS ANGELES COUNTY MEDI-CAL AGREEMENT
This is an amendment of the Health Services Agreement for Los Angeles County
(the "Agreement") entered into by and between ▇▇▇▇▇▇ Healthcare of California
(formerly, "▇▇▇▇▇▇ Medical Centers") and Health Net of California, Inc.
(formerly, "Foundation Health, a California Health Plan"). Subject to the terms
and conditions of Restated Addendum I to the Agreement, the parties hereby amend
the Agreement as follows:
1. Compensation for the period of October 1, 2002 through March 31, 2003. For
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the specified period, Health Net shall pay Molina monthly capitation rates
for each Member assigned to Molina calculated at [ * ]% of the applicable
amount received by Health Net from the DHS for the Member.
2. Compensation for the period on and after April 1, 2003. For the specified
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period, Health Net shall pay Molina monthly capitation rates for each
Member assigned to Molina calculated at [ * ]% of the applicable amount
received by Health Net from the DHS for the Member.
3. Section 1.6, Compensation Adjustment Provision, of Restated Addendum I, to
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the Agreement, is hereby deleted in its entirety and replaced with the
following language.
"Automatic Compensation Adjustment Provision. The compensation payable
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under this Agreement by Health Net to Molina on and after October 1,
2002, will automatically increase or decrease commensurate with any
changes in Health Net's compensation for its Los Angeles County
Medi-Cal Plan under Health Net's Medi-Cal Agreement with the DHS in
order to maintain ▇▇▇▇▇▇'▇ compensation at [ * ]% of Health Net's
compensation from the DHS through March 31, 2003, and [ * ]%
thereafter."
4. Effective date of Amendment. This Amendment is effective October 1, 2002.
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▇▇▇▇▇▇ HEALTHCARE HEALTH NET OF CALIFORNIA, INC.
OF CALIFORNIA
By: /s/ By: /s/
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▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇,
CEO Vice President
California Health Programs