Molina Healthcare

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Molina Healthcare
Traded asNYSEMOH
IndustryHealthcare
Founded1980
Founder(s)Dr. C. David Molina
HeadquartersLong Beach, California, USA
Websitemolinahealthcare.com
 
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Molina Healthcare
Traded asNYSEMOH
IndustryHealthcare
Founded1980
Founder(s)Dr. C. David Molina
HeadquartersLong Beach, California, USA
Websitemolinahealthcare.com

Molina Healthcare (NYSEMOH) is a managed care company headquartered in Long Beach, California, United States. In 2009 it was ranked as one of several Fortune 500 companies based in California; out of the California companies, it was 69th in rank.[1] In 2013, Molina Healthcare was ranked 423 in Fortune 500.[2]

History[edit]

Molina Healthcare was founded in 1980 by C. David Molina, an emergency room physician in Long Beach, CA.[3] 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.[4] 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.[5]

The company is now run by Dr. Molina’s son, J. Mario Molina, MD, who is also a physician. He is the current president and CEO of the company. John Molina, Mario’s younger brother, is the current CFO of Molina Healthcare.[6] The two took over the Molina’s operations after their father died in 1996 and continued to expand the company. According to SEC filings, in 2012 Dr. Mario Molina received total compensation of $4,951,315 and John Molina received $2,965,925. [7] C. David Molina’s daughter Martha Bernadett, MD is also a part of Molina Healthcare. Since receiving two Robert Wood Johnson Foundation awards in 2002, Dr. Bernadett has served as the Executive Vice President of Research and Innovation at Molina Healthcare. She founded the Molina Institute for Cultural Competency, Book Buddies and the Molina Foundation, a non-profit organization to promote access to education and health care to reduce disparities.[8]

Clinic Expansion[edit]

The first Molina Medical clinic was opened in Long Beach, CA in 1980. Since then, 27 clinics have opened in Northern California, Southern California, Washington, New Mexico and Florida.[9][10] Molina Medical Group (MMG) also runs state-owned clinics in Fairfax County, Virginia. The clinics were opened to provide health care to low-income families and individuals. This service is paid for by tax dollars through state and federal health programs.

Becoming an HMO[edit]

Molina Healthcare has focused on government-paid health care programs such as SCHIP and Medicaid since it became a health maintenance organization in 1985. From 1985 to 1997, the company was only in California.

Expansion of Health Plans[edit]

As of December 31, 2012, Molina Healthcare had over 1.8 million members in its health plans.[14] The health plans are operated by the respective subsidiaries in its states, each of which is a licensed HMO.[15]

Going Public[edit]

Molina Healthcare filed with the Securities and Exchange Commission for an initial stock offering in December 2002 and went public in July 2003 with a stock offering of $102 million.[6] The shares were priced at $17.50, and Molina raised approximately $124 million in the initial public offering.[16] In its stock market debut, Molina sold 6.6 million shares at $20.30, making the company the third-best first day gainer of 2003.[17] Molina Healthcare was the first company from Inc. Magazine’s Inner City 100 list to go public.[18]

Entering Medicare Market[edit]

Molina Healthcare entered the Medicare market in 2006. The company currently offers Medicare health plan options in eight states: California, Florida, Michigan, New Mexico, Ohio, Texas, Utah and Washington.[19]

Entering MMIS Market[edit]

Molina Healthcare acquired Unisys’ health information management business in December 2010 to create Molina Medicaid Solutions (MMS).[20] MMS has Medicaid Management Information Systems (MMIS) contracts with Idaho, Louisiana, Maine, New Jersey and West Virginia. In June 2011 the state of Louisiana selected CNSI, a Maryland-based health care technology services company, to replace Molina as the state’s MMIS and fiscal agent operations. However, in March 2013, Gov. Bobby Jindal canceled that contract. A new fiscal agent has yet to be named.[21] MMS also gained a contract with the U.S. Virgin Islands. Molina Medicaid Solutions will administer operations for the territory out of its West Virginia location.[22]

Entering Health Insurance Marketplace[edit]

Beginning in 2014, Molina Healthcare will offer Marketplace plans in nine states where it offers Medicaid health plans – California, Washington, Texas, Utah, New Mexico, Wisconsin, Michigan, Ohio and Florida.[23]

Dual Eligible Demonstration Projects[edit]

Molina was selected to participate in dual eligible demonstration projects in California,[24] Ohio[25] and Illinois[26] to serve patients who are eligible for both Medicare and Medicaid.

Awards and Recognitions[edit]

Molina Healthcare was awarded the 2011 Alfred P. Sloan Award for Business Excellence in Workplace Flexibility. The award ranks Molina Healthcare in the top 20% of employers nationally in terms of its programs, policies and culture for creating an effective and flexible workplace.[27]

Labor Litigation[edit]

In April 2011, a lawsuit was filed against the company and its outsourcing firm Cognizant Technologies in California state court. Both companies are accused of discriminating against American workers who claim they were fired and replaced with H-1B workers. The companies are accused of violating numerous federal and state labor laws. In July, the U.S. District Court, Central District of California ruled that there were no federal claims, which the plaintiff’s attorney had acknowledged in his Declaration in Support of (the plaintiff’s) Motion to Remand. Molina has expressed confidence it will “win in court because specific allegations have been examined and found false.”[28]

References[edit]

  1. ^ "Fortune 500 2009: States: California Companies." Fortune. Retrieved on December 8, 2009.
  2. ^ "[1]."
  3. ^ In Good Company [2], Hispanic Magazine.
  4. ^ How I Made It: J. Mario Molina and John Molina - Los Angeles Times. Articles.latimes.com (2010-05-23). Retrieved on 2013-07-29.
  5. ^ In Down Economy, Molina Healthcare Soars to New Heights [3], Hispanic Business Magazine.
  6. ^ a b How I Made It: J. Mario Molina and John Molina [4], Los Angeles Times.
  7. ^ Edgar Pro. Yahoo.brand.edgar-online.com. Retrieved on 2013-07-29.
  8. ^ [5], South Bay Conference for Women.
  9. ^ Molina Healthcare to open primary care clinic in Albuquerque - Albuquerque Business First. Bizjournals.com (2012-06-20). Retrieved on 2013-07-29.
  10. ^ Molina Healthcare opens first Florida clinic in West Palm Beach - South Florida Business Journal. Bizjournals.com. Retrieved on 2013-07-29.
  11. ^ a b c d e f [6], Alacrastore.
  12. ^ Molina Healthcare Selected to Participate in the Illinois Integrated Care Delivery System for Dual Eligibles - Yahoo! Finance. Finance.yahoo.com (2012-11-15). Retrieved on 2013-07-29.
  13. ^ http://finance.yahoo.com/news/moh-enters-state-south-carolina-182003163.html
  14. ^ Molina News Release. Phx.corporate-ir.net. Retrieved on 2013-07-29.
  15. ^ [7], Reuters Profile: Molina Healthcare, Inc.
  16. ^ [8], McDermott
  17. ^ [9], The Street
  18. ^ [10], Inc. Magazine
  19. ^ [11], Health Plan One
  20. ^ [12], Managed Care Information Center
  21. ^ Shuler, Marsha. (2013-03-24) Jindal cancels contract | Home | The Advocate — Baton Rouge, LA. Theadvocate.com. Retrieved on 2013-07-29.
  22. ^ http://stthomassource.com/content/news/local-news/2012/10/13/vi-partners-west-virginia-medicaid-information-system?mini=calendar/2012/10/all
  23. ^ http://www.cnbc.com/id/101062927
  24. ^ [13][dead link]
  25. ^ Molina Healthcare to participate in Ohio’s integrated care system for dual eligibles. MedCity News (2012-08-27). Retrieved on 2013-07-29.
  26. ^ http://www3.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=2&RecNum=10692
  27. ^ [14] Downtown Gazette
  28. ^ Fired IT workers file lawsuit claiming H-1B workers replaced them. Computerworld (2011-07-12). Retrieved on 2013-07-29.

External links[edit]

Fortune 500 2012 List