By Dave Barkholz | July
24, 2017
Medicaid health plan Molina Healthcare intends to lay off 1,400
employees, or 10% of its workforce, over the coming months to try to offset
losses from its Obamacare exchange business, the company said in an internal
memo to employees Monday.
The cuts will be across-the-board, including senior leadership, interim CEO and Chief Financial Officer Joe White said in the memo.
"As part of our drive for operational efficiencies, we are simplifying our organizational structure and reducing the size of our workforce. This was a very difficult decision, and one that I do not take lightly," White said.
Molina spokeswoman Laura Murray declined to comment.
Reuters first reported the job cuts Monday.
In the memo obtained by Modern Healthcare, White said the cuts will come in two waves and be largely completed by September.
Molina fired its long-time CEO Mario Molina and his CFO brother John Molina in May, three months after the company posted a surprise $91 million net loss in its fourth quarter, largely from losses on its Affordable Care Act marketplace business.
Mario Molina, whose father founded the health plan, had been outspoken in his criticism of the Trump administration's efforts to repeal and replace the ACA.
White in his employee letter said Molina would become a more nimble and creative company under the restructuring, which the company has dubbed Project Nickel.
Molina predominantly serves Medicaid recipients.
"We must commit to being the highest value managed-care solution for people receiving government assistance. We must increase value by improving quality and driving down costs," White said.
The cuts will be across-the-board, including senior leadership, interim CEO and Chief Financial Officer Joe White said in the memo.
"As part of our drive for operational efficiencies, we are simplifying our organizational structure and reducing the size of our workforce. This was a very difficult decision, and one that I do not take lightly," White said.
Molina spokeswoman Laura Murray declined to comment.
Reuters first reported the job cuts Monday.
In the memo obtained by Modern Healthcare, White said the cuts will come in two waves and be largely completed by September.
Molina fired its long-time CEO Mario Molina and his CFO brother John Molina in May, three months after the company posted a surprise $91 million net loss in its fourth quarter, largely from losses on its Affordable Care Act marketplace business.
Mario Molina, whose father founded the health plan, had been outspoken in his criticism of the Trump administration's efforts to repeal and replace the ACA.
White in his employee letter said Molina would become a more nimble and creative company under the restructuring, which the company has dubbed Project Nickel.
Molina predominantly serves Medicaid recipients.
"We must commit to being the highest value managed-care solution for people receiving government assistance. We must increase value by improving quality and driving down costs," White said.
Dave Barkholz is Modern Healthcare’s Southern
Bureau Chief stationed in Nashville. He covers hospitals, doctors, suppliers
and governance across the Southeast. A winner of numerous national journalism
awards, Barkholz started his career at Modern Healthcare in 1984 covering the
investor-owned hospital companies. He spent the past 10 years in Detroit at
Automotive News, a sister Crain publication.
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