3 Molina Healthcare

Molina Healthcare

Molina Healthcare (NYSEMOH) is a managed care company headquartered in Long Beach, California, United States. In 2009 it was ranked as one of several Fortune 500 companies based in California; out of the California companies it was 69th in rank.[1]



Molina Healthcare was founded in 1980 by C. David Molina, an emergency room physician in Long Beach, CA.[2] He had seen patients use the emergency room for a sore throat or the flu. As a result of his emergency room work, Dr. Molina established his first primary care clinic with the goal of serving the lowest-income patients, who get health care paid for by government programs, and to help those who were uninsured or non-English speaking.[3]

The company is now run by Dr. Molina’s son, J. Mario Molina, MD, who is also a physician. He is the current president and CEO of the company. John Molina, Mario’s younger brother, is the current CFO of Molina Healthcare.[4] The two took over the Molina’s operations after their father died in 1996 and continued to expand the company. C. David Molina’s daughter Martha Bernadett, MD is also a part of Molina Healthcare. Since receiving two Robert Wood Johnson Foundation awards in 2002, Dr. Bernadett has served as the Executive Vice President of Research and Innovation at Molina Healthcare. She founded the Molina Institute for Cultural Competency, Book Buddies and the Molina Foundation, a non-profit organization to promote access to education and health care to reduce disparities.[5]

Clinic Expansion

The first Molina Medical clinic was opened in Long Beach, CA in 1980. Since then, 15 clinics have opened in Northern California, Southern California and Washington. Molina Medical Group (MMG) also runs state-owned clinics in Fairfax County, Virginia. The clinics were opened to provide quality health care to underserved, needy populations. MMG plans on opening clinics in Florida and New Mexico in late 2011.[6]

Becoming an HMO

Molina Healthcare has focused on government-sponsored health care programs such as SCHIP and Medicaid since it became a health maintenance organization (HMO) in 1985. From 1985 to 1997, the company was only in California.

Expansion outside of California

  • 1997: Molina Healthcare acquired HealthReach Family Health Care and entered the states of Utah and Michigan.[7]
  • 2000: Molina Healthcare entered the state of Washington.
  • 2004: Molina Healthcare acquired Health Care Horizons from Dialog Groups Inc. and enters the state of New Mexico.[7]
  • 2005: Molina Healthcare became a health plan in Ohio.
  • 2006: Molina Healthcare entered the state of Texas.[7]
  • 2007: Molina Healthcare entered Missouri.[7]
  • 2008: Molina Healthcare entered Florida.[7]
  • 2010: Molina Healthcare entered Wisconsin.[7]

As of June, 30 2011, Molina Healthcare had over 1.6 million members in its health plans. The health plans are operated by the respective subsidiaries in its states, each of which is a licensed HMO.[8]

Going Public

Molina Healthcare filed with the Securities and Exchange Commission for an initial stock offering in December 2002 and went public in July 2003 with a stock offering of $102 million.[4] The shares were priced at $17.50, and Molina raised approximately $124 million in the initial public offering.[9] In its stock market debut, Molina sold 6.6 million shares at $20.30, making the company the third-best first day gainer of 2003.[10] Molina Healthcare was the first company from Inc. Magazine’s Inner City 100 list to go public.[11]

Entering Medicare Market

Molina Healthcare entered the Medicare market in 2006. The company currently offers Medicare health plan options in eight states: California, Florida, Michigan, New Mexico, Ohio, Texas, Utah and Washington.[12]

Entering MMIS Market

Molina Healthcare acquired Unisys’ health information management business in December 2010 to create Molina Medicaid Solutions (MMS).[13] MMS has Medicaid Management Information Systems (MMIS) contracts with Idaho, Louisiana, Maine, New Jersey and West Virginia.

Labor Litigation

In April, 2011 a lawsuit was filed against the company and its outsourcing firm Cognizant Technologies in California state court. Both companies are accused of discriminating against American workers who claim they were fired and replaced with H-1B workers. The companies are accused of violating numerous federal and state labor laws. In July, the U.S. District Court, Central District of California ruled that there were no federal claims, which the plaintiff’s attorney had acknowledged in his Declaration in Support of (the plaintiff’s) Motion to Remand. Molina has expressed confidence it will “win in court because specific allegations have been examined and found false.” http://www.computerworld.com/s/article/9218349/Fired_IT_workers_file_lawsuit_claiming_H_1B_workers_replaced_them


  1. ^ "Fortune 500 2009: States: California Companies." Fortune. Retrieved on December 8, 2009.
  2. ^ In Good Company [1], Hispanic Magazine.
  3. ^ In Down Economy, Molina Healthcare Soars to New Heights [2], Hispanic Business Magazine.
  4. ^ a b How I Made It: J. Mario Molina and John Molina [3], Los Angeles Times.
  5. ^ [4], South Bay Conference for Women.
  6. ^ [5], South Florida Business Journal.
  7. ^ a b c d e f [6], Alacrastore.
  8. ^ [7], Reuters Profile: Molina Healthcare, Inc.
  9. ^ [8], McDermott
  10. ^ [9], The Street
  11. ^ [10], Inc. Magazine
  12. ^ [11], Health Plan One
  13. ^ [12], Managed Care Information Center

External links

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