*** Welcome to piglix ***

Molina Healthcare

Molina Healthcare
Traded as MOH
S&P 400 Component
Industry Healthcare
Founded 1980
Founder Dr. C. David Molina (deceased)
Headquarters Long Beach, California, USA
Revenue IncreaseUS$ 14.18 billion (2015)
IncreaseUS$ 143 million (2015)
Website molinahealthcare.com

Molina Healthcare (: MOH) is a managed care company headquartered in Long Beach, California, United States. In 2016, Molina Healthcare was ranked 201 in Fortune 500. In 2015, the company's health plans served about 3.5 million people through government-based healthcare programs.

Molina Healthcare was founded in 1980 by C. David Molina, an emergency room physician in Long Beach, CA. He had seen an influx of patients using the emergency room for common illnesses such as a sore throat or the flu because they were being turned away by doctors who would not accept Medi-Cal. As a result of his emergency room work, Dr. Molina established his first primary care clinic with the goal of treating the lowest-income patients, regardless of their ability to pay.

The company was run by Dr. Molina’s son, J. Mario Molina, MD, who was a physician. He was the president and CEO of the company. John Molina, Mario’s younger brother, was the current CFO of Molina Healthcare. In May of 2017, in light of poor financial performance by the company, J. Mario and John were removed from their positions by the board, ending family control of the company. The two took over the Molina’s operations after their father died in 1996 and continued to expand the company.

However there are reports that it was J Mario Molina's outspoken criticism of the current administration that motivated the firing.

“I’ve been a very vocal critic of what’s going on in Washington,” Molina told Politico. “I know the other health plan executives have been afraid to speak out. Maybe they’re smarter than I am, but I’m not going to back off.”

FierceHealthCare.com reported: "Molina Healthcare had thrived in the ACA’s individual marketplaces, but revealed in February that it lost $110 million in the fourth quarter of fiscal year 2016, due at least in part to the fact that it had to pay significantly more into the risk adjustment program than it had anticipated.

However, despite those losses, Molina beat Wall Street predictions for the first quarter of 2017, the results of which were announced a day after the brothers were fired."

There has also been speculation by industry analysts about a sale of the company, which may present an additional motivation to remove members of the founder's family from leadership positions.


...
Wikipedia

...