After 2 years of the media too authorities gushing over their success, Obamacare darling Molina is having a fossil oil 2017. How rough? Well...
- In Feb Molina announced losses from the quaternary quarter of 2016 to move $110 million. They likewise study a turn a profit of $52 million. This is a huge autumn from their 2015 tape profits of $143 i 1000 one thousand coupled amongst 2014 profits of $62 million.
- On May sec they fired CEO J. Mario Molina too CFO John Molina. The motion came equally a surprise too the board claimed it was due to piteous fiscal performance.
- The next twenty-four hours they announced 1st quarter 2017 earnings that truly vanquish Wall Street expectations. Coupling this amongst the ouster of Brothers Molina too speculation began of a possible sale of the company.
- On May quaternary Mario Molina went on tape suggesting that the board ousted him due to his political views. Mario Molina has been a song critic of President Trump too a pregnant supporter of the Democratic political party contributing good over $70,000 to diverse campaigns too PAC's inwards 2016 alone. Shoot, he gave the Hillary Victory Fund $33,400! Talk almost lighting coin 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 acute 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 contest exiting the markets due to losses too uncertainty, this leaves Molina to receive got on the risk. It's good known that the higher direct chances population gravitated towards wellness plans that had broader networks. Molina thrived because of their express networks where past times non having major high terms specialty facilities inwards their network led to a healthier direct chances pool.
Molina's "competitive" wages was tied to avoiding high dollar risks (adverse selection) too that wages is right away gone.