- After 21 years on the job
- Praise for Joseph Mario Molina
- Joseph W. White taking over in the interim
- Search for a successor
(exechange) — Long Beach, California, May 02, 2017 — Joseph Mario Molina, chief executive of Molina Healthcare, leaves. It is an abrupt change. As announced by Molina Healthcare, Inc. in a news release and in a regulatory filing published on Tuesday, May 02, 2017, Joseph Mario Molina leaves the post as Chief Executive Officer at the managed care company in a surprising move after 21 years on the job, effective immediately.
It is the end of an era.
Molina Healthcare will undertake a search for a successor.
Joseph Mario Molina’s duties are taken over in the interim by Joseph W. White, most recently Chief Accounting Officer at Molina Healthcare, Inc.
Joseph Mario Molina’s move is part of a management shake-up also involving the position of Chief Financial Officer.
White has also been named Chief Financial Officer, replacing John C. Molina.
“Disappointing financial performance”
The sudden management change is explained as follows. Dale B. Wolf, Chairman, said in a fairly blunt statement: “In light of the Company’s disappointing financial performance, the Board has determined to change leadership in order to drive profitability through operational improvements. These changes represent targeted and deliberate actions to enhance the Company’s focus and improve its competitive position within the healthcare industry. With the industry in dynamic transition, the Board believes that now is the right time to bring in new leadership to capitalize on Molina’s strong franchise and the opportunities we see for sustained growth. The Board is committed to achieving operational excellence and improving the Company’s financial performance on behalf of our shareholders, more than 20,000 employees and our over 4 million members.”
Precise information about the future plans of Joseph Mario Molina was not immediately available.
Molina Healthcare said: “On May 2, 2017, the Board of Directors … of Molina Healthcare, Inc. … terminated the employment of Dr. J. Mario Molina, the Company’s then President and Chief Executive Officer, and John C. Molina, the Company’s then Chief Financial Officer and Treasurer, without cause by written notice under the terms of their respective employment agreements with the Company.”
Share price decline
The change follows a decline in the share price of Molina Healthcare, Inc. since September 2015.
Capital World Investors holds 9.7 percent stake
Capital World Investors reported a 9.7 percent stake in Molina Healthcare, Inc. as of December 30, 2016.
On the job as CEO since 1996
Joseph Mario Molina has been the Chairman, Chief Executive Officer and President at Molina Healthcare, Inc. since 1996.
Joseph M. Molina’s father, C. David Molina, founded the company in 1980 to address the special needs of low-income patients.
After his father’s death in 1996, Dr. Molina assumed leadership of Molina Healthcare, keeping alive the tradition of its commitment to physician management.
He served as Medical Director from 1991 to 1994 and Vice President from 1994 to 1996, where he was responsible for contracting and provider relations, member services, marketing and quality assurance.
Molina is a member of the American College of Physicians.
He serves as a member of the Board of Johns Hopkins Medicine, the Aquarium of the Pacific and is an Overseer of the Huntington Library.
Molina received the Ernst & Young Greater Los Angeles Entrepreneur of the Year Award for 2002.
He was named as an honoree of the 2002 Greater Long Beach National Conference for Community and Justice; and was inducted to the Long Beach Community College 2002 Hall of Fame.
Molina was featured in Time magazine as one of the 25 most influential Hispanics in America in 2005.
In 2016, he was named one of the 50 most influential physician executives by Modern Healthcare, and in 2015 and 2016 he was named one of the 100 most influential people in healthcare.
Molina received his medical degree from the University of Southern California and performed his medical internship and residency at the Johns Hopkins Hospital.
Molina is board certified in internal medicine and endocrinology and metabolism, and received and executive management certificate from the Anderson School of Business at UCLA.
Read the full story in the exechange report 19.2017 ($).