After 2 years of the media likewise regime gushing over their success, Obamacare darling Molina is having a crude 2017. How rough? Well...
- In February Molina announced losses from the quaternary quarter of 2016 to deed $110 million. They likewise report a plough a turn a profit of $52 million. This is a huge tumble from their 2015 record profits of $143 i m 1 M coupled with 2014 profits of $62 million.
- On May s they fired CEO J. Mario Molina likewise CFO John Molina. The displace came as a surprise likewise the board claimed it was due to pitiful financial performance.
- The side past times side 24-hour interval they announced 1st quarter 2017 earnings that genuinely rhythm Wall Street expectations. Coupling this with the ouster of Brothers Molina likewise speculation began of a possible sale of the company.
- On May quaternary Mario Molina went on record suggesting that the board ousted him due to his political views. Mario Molina has been a vocal critic of President Trump likewise a meaning supporter of the Democratic political political party contributing proficient over $70,000 to various campaigns likewise PAC's inwards 2016 alone. Shoot, he gave the Hillary Victory Fund $33,400! Talk well-nigh lighting money on fire. But, I digress.
- On May 15th the board voted to retain Brothers Molina on their board of directors. This is an interesting twist based on their shrewd departure.
- July 24th, Molina slashes 1400 jobs - 10% of their workforce - inwards what the interim CEO calls "Project Nickel".
- The latest, on August 2nd, Molina announces a flatlined.
With competitor exiting the markets due to losses likewise uncertainty, this leaves Molina to have got on the risk. It's proficient known that the higher forthwith chances population gravitated towards wellness plans that had broader networks. Molina thrived because of their limited networks where past times times not having major high price specialty facilities inwards their network led to a healthier forthwith chances pool.
Molina's "competitive" reward was tied to avoiding high dollar risks (adverse selection) likewise that reward is correct away gone.
