Molina Ousts Founders’ Sons From Top Positions, Citing Disappointing Financial Performance
Dr. J. Mario Molina in his position as CEO was a vocal critic of President Donald Trump and Congress' efforts to repeal and replace the health law.
The New York Times:
Molina, Key Provider Under Obamacare, Ousts C.E.O., A Trump Critic
Dr. J. Mario Molina, the outspoken chief executive of the California health insurance company founded by his father, was abruptly removed from his position at Molina Healthcare, according to an announcement by the company on Tuesday. His brother, John, the company’s chief financial officer, was also immediately replaced. (Abelson, 5/2)
The Associated Press:
Shakeup At Molina, CEO And CFO, Sons Of Founder Are Out
The company cited disappointing financial performance and its need to improve its operations and profits for the shake-up. Out are CEO Dr. Mario Molina, 58, who replaced his father as president and CEO in 1996, and John Molina, 52, who had served as chief financial officer since 2003. (5/2)
Modern Healthcare:
Molina Healthcare Fires CEO And CFO Amid 'Disappointing' Finances
Dale Wolf, Molina's newly appointed chairman of the board, blamed poor financial results as the reason for kicking the Molina brothers out of the eponymous company their father built. But Molina's first quarter 2017 earnings released later on Tuesday seem at odds with Wolf's stated reason. Molina delivered a strong quarter. Its profit more than doubled to $77 million compared with $24 million at the same time in 2016. Revenue grew by 12.9% to $4.9 billion in the first quarter year over year. (Livingston, 5/2)
The Wall Street Journal:
Molina Healthcare Fires CEO, CFO
Chief Accounting Officer Joseph White will serve as CFO and interim CEO. The company has begun a search for a permanent CEO. Shares hit a 52-week high on the news, closing at $59.75, a move that analysts said may partly reflect the belief that the company is now more likely to be acquired. (Wilde Mathews and Hufford, 5/2)
Los Angeles Times:
Molina Healthcare Fires Its CEO And CFO, Sons Of The Company's Founder
The growing, Long Beach-based health insurer has nearly 5 million customers in 12 states and Puerto Rico, most of them insured through Medicaid, the government program for the poor. In California, Molina currently insures 765,000 people and operates its own clinics around the state. The company also has Medicare programs, and more than 1 million customers who purchased a plan on one of the marketplace exchanges created by the Affordable Care Act, or Obamacare. (Petersen, 5/2)
The Hill:
ObamaCare Insurer Ousts CEO Who Criticized GOP Repeal Plan
Molina has been a vocal critic of the GOP's ObamaCare repeal and replace process. He threatened to leave the ObamaCare exchanges if key insurer payments weren't funded. (Hellmann, 5/2)
Bloomberg:
Molina Ousts Family Leaders, Sparking Takeover Speculation
The shares jumped 18 percent to $59.75 at the close in New York, the biggest one-day advance since June 2012. (Tracer, 5/2)
