The recent turns of events have carried out major leadership changes in Molina Healthcare. These changes were not only sudden but also shocking for the health industry. That is because, two of the high ranked officials of Molina Healthcare, who are J. Mario Molina, CEO and John Molina, CFO, were fired from the company. The shocking fact is, both Molina brothers are the sons of the company’s founder C. David Molina. This was further surprising for the health industry, as Molina Healthcare’s president, Patty Kehoehad resigned from her post just a couple of weeks back. Thus, Molina Healthcare is experiencing a huge change in leadership within the short period of time.
Changes In Leadership Within Molina Healthcare
Based in Long Beach, CA; Molina Healthcare was founded by C. David Molina in the year 1980. Last year, the healthcare provider became the state’s second-largest private company in the recent Private Companies Listfrom Business First. The company holds this rank with $1.3 billion total revenue and has employed nearly 1,066 employees. However recently, the company was facing major losses. It is said that the Molina brothers, who were CEO and CFO of the company, were fired after the company’s shares dropped by 17%. The latest reports also suggest that Molina Healthcare’s stocks rose again by 18% after firing its former CEO and CFO.
One of the official statements from Molina Healthcare mentions,
“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.”
Just a couple of weeks ago, Patty Kehoe who was Molina Healthcare New Mexico’s president, resigned from her position. According to her, this was a decision due to ‘personal reasons’. Kehoe also added that she wanted to focus on reducing the state’s high suicide rates.
After her resignation, Patty Kehoe’s position is held by Daniel Sorrells. He will work as interim president. The positions of J. Mario Molina and John Molinawill be replaced by Joseph White, who is the company’s chief accounting officer. It is still not clear whether there have been any other high-level resignations or layoffswithin the company.
Date: May 04, 2017