Molina Healthcare, Inc. (MOH): history, ownership, mission, how it works & makes money (2024)

A Brief History of Molina Healthcare, Inc. (MOH)

Molina Healthcare, Inc. (MOH) is a managed care company headquartered in Long Beach, California, dedicated to providing health care services to individuals and families eligible for government-sponsored programs. Founded in 1980 by Dr. C. David Molina, the company has grown extensively over the years.

Dr. C. David Molina, an emergency room physician, founded the company to address the health care needs of low-income families. His mission was to provide quality health care to those who were underserved.

Molina Healthcare transitioned into a health maintenance organization (HMO) to better manage the care of its patients, marking its entry into the managed care sector. This transition enabled the company to offer a broader range of services

Molina Healthcare went public, trading its shares on the New York Stock Exchange under the symbol MOH. The initial public offering (IPO) allowed the company to expand its footprint and grow its operations.

The company began to expand significantly through acquisitions. Key acquisitions include:

• 2006: Acquired Mercy CarePlus, a Medicaid managed care organization in Ohio.
• 2010: Acquired Unisys' Health Information Management business.
• 2015: Acquired Providence Human Services and Providence Community Services.

Dr. J. Mario Molina, the son of the founder, was replaced as CEO. The company appointed Joseph White as the interim CEO, followed by a permanent replacement.

Molina Healthcare initiated a strategic transformation plan to improve its financial performance and operational efficiency. This included cost-cutting measures and a focus on core markets.

During the COVID-19 pandemic, Molina Healthcare enhanced its services to support its members, including telehealth options and additional resources for affected individuals.

As of 2023, Molina Healthcare continues to expand its services and reach, providing care to millions of members across multiple states, and remains dedicated to its founding mission of delivering quality health care to underserved populations.

Who Owns Molina Healthcare, Inc. (MOH)

Molina Healthcare, Inc. (MOH) is a publicly traded company, and its ownership is spread across various institutional and individual investors. This diversified ownership structure is common for large publicly traded companies, providing a broad shareholder base and ensuring diversified investment stakes.

Here are some of the key ownership details for Molina Healthcare, Inc.:

• Institutional Investors: The majority of Molina Healthcare's shares are owned by institutional investors such as mutual funds, pension funds, and hedge funds. These institutions hold significant portions of the company's stock, reflecting confidence in the company's business model and growth prospects.
• Mutual Funds: Various mutual funds have substantial stakes in Molina Healthcare, adding an additional layer of stability and institutional oversight to the company's shareholder base.
• Board and Executives: Members of the board of directors and executive officers also hold shares in the company. These insider holdings are often seen as a positive sign, indicating that the leadership has a vested interest in the company's success.
• Public Shareholders: Individual retail investors also own shares of Molina Healthcare, though their combined ownership is typically smaller compared to institutional investors.

Some of the notable institutional investors in Molina Healthcare include:

• Vanguard Group: As one of the largest asset management companies globally, Vanguard Group holds a significant percentage of Molina Healthcare's shares through its various funds.
• BlackRock: BlackRock is another major institutional investor with a notable stake in the company. Their involvement represents a substantial portion of institutional ownership.
• State Street Corporation: State Street Corporation also holds a significant number of shares in Molina Healthcare, contributing to the institutional ownership pool.

Molina Healthcare, Inc. (MOH) Mission Statement

Molina Healthcare, Inc. is guided by a mission to provide quality healthcare to people receiving government assistance. The company's mission can be summarized as follows:

• Quality Care: Molina Healthcare is committed to delivering high-quality medical care, ensuring that patients receive the best possible treatment and services.
• Access for All: The organization aims to make healthcare accessible to those who are underserved, particularly individuals and families enrolled in government-supported programs such as Medicaid and Medicare.
• Respect and Dignity: Molina's mission emphasizes treating all patients with respect and dignity, acknowledging their unique needs and circ*mstances.
• Cost-Effective Solutions: The company focuses on providing cost-effective healthcare solutions that do not compromise on quality, helping to manage expenses for both patients and healthcare systems.
• Community Engagement: Molina Healthcare actively engages with communities to better understand and address their specific healthcare needs, promoting overall health and wellness.

By adhering to these core principles, Molina Healthcare, Inc. strives to fulfill its mission of improving the health and well-being of its members and the communities it serves.

How Molina Healthcare, Inc. (MOH) Works

Molina Healthcare, Inc. (MOH) is a Fortune 500 company that provides managed healthcare services under the Medicaid and Medicare programs and through state insurance marketplaces. Molina Healthcare primarily serves individuals and families who receive government assistance. Below is an overview of how the company operates:

• Medicaid: Molina Healthcare works with state governments to provide health plans for low-income families and individuals. They offer a wide range of services, including preventive care, immunizations, and treatment for chronic conditions.
• Medicare: The company offers Medicare Advantage plans, which provide Medicare beneficiaries with additional benefits such as prescription drug coverage, vision, and dental services.
• Marketplace Plans: Molina also offers affordable healthcare plans through the state insurance marketplaces set up under the Affordable Care Act (ACA). These plans are designed to cater to those who do not qualify for Medicaid but still seek cost-effective healthcare coverage.

Molina Healthcare operates through an extensive network of healthcare providers, including doctors, hospitals, and clinics. The company contracts with medical professionals to ensure that members have access to comprehensive care services. This network is crucial for delivering quality healthcare services to its members.

One of Molina’s key strengths is its focus on care coordination. They employ case managers and healthcare coordinators who work with patients to manage their health effectively. This includes scheduling regular check-ups, managing chronic conditions, and ensuring that all healthcare needs are met in a timely manner. This approach helps to improve patient outcomes and reduce healthcare costs.

Molina Healthcare leverages technology to improve service delivery and patient care. They offer online portals where members can access their health information, find providers, and manage their plans. Additionally, the company invests in data analytics to identify trends and improve the quality of care provided.

Customer satisfaction is a top priority for Molina Healthcare. They offer various support services, including 24/7 member services hotlines, health education programs, and community outreach initiatives. These services aim to help members understand their health plans and make informed healthcare decisions.

Effective financial management is crucial for Molina Healthcare. They focus on maintaining cost efficiency while delivering high-quality care. This is achieved through strategic planning, risk management, and continuous monitoring of financial performance.

Through these core operations and strengths, Molina Healthcare, Inc. strives to provide accessible and cost-effective healthcare solutions to millions of Americans who rely on government assistance for their medical needs.

How Molina Healthcare, Inc. (MOH) Makes Money

Molina Healthcare, Inc. (MOH) is a prominent player in the health insurance industry, primarily catering to individuals and families who qualify for government-sponsored healthcare programs. The company's business model revolves around providing comprehensive healthcare services through a network of healthcare providers. Here’s how Molina Healthcare makes money:

• Government Contracts: Molina Healthcare generates a significant portion of its revenue through contracts with state and federal government agencies. These contracts allow Molina to provide health insurance services to Medicaid and Medicare beneficiaries. The company is reimbursed by the government for the healthcare services it delivers, making this a crucial revenue stream.
• Medicaid Services: Molina Healthcare manages Medicaid programs in multiple states. Medicaid, a joint federal and state program, provides health insurance to low-income individuals and families. Molina receives capitated payments from state governments, which are fixed amounts paid per enrolled member per month. These payments cover the cost of providing healthcare services to Medicaid beneficiaries.
• Medicare Advantage: Molina offers Medicare Advantage plans, which are an alternative to traditional Medicare. These plans provide additional benefits and services beyond what is covered under standard Medicare. Molina receives payments from the federal government to manage these plans, which include coverage for hospital services, medical services, and prescription drugs.
• Marketplace Plans: Under the Affordable Care Act (ACA), Molina Healthcare also offers health insurance plans through the health insurance marketplaces. These plans are designed for individuals and families who do not qualify for Medicaid or Medicare but still need affordable health insurance options. Molina earns premiums from enrollees who purchase these plans.
• Pharmacy Services: Molina Healthcare provides pharmacy benefit management services, which involve the administration of prescription drug benefits for its members. The company negotiates drug prices with pharmaceutical manufacturers and pharmacies, earning revenue through these negotiations and the management of drug formularies.
• Care Management: Molina offers care management services aimed at improving health outcomes for its members. These services include chronic disease management, preventive care, and personalized health coaching. By enhancing the quality of care, Molina can reduce overall healthcare costs, which benefits both the company and its members.

Through these diverse revenue streams, Molina Healthcare ensures a steady flow of income by leveraging its expertise in managing government-sponsored healthcare programs and providing comprehensive health insurance solutions to its members.