WCG had to sell Caid plans in Missouri and Nebraska. 300,000 members!
Did MOH bid? Anthem got both.
If our brothers were still in charge, you know those members would have been ours. This management team can’t grow the business.
4 replies (most recent on top)
Acquisitions do absorb a great deal of time, energy and resources. For some firms, acquisitions can be an effective growth strategy. Many of our current states evolved from health plan acquisitions. Consider that MMS was an acquisition that contributed significant dividends to our firm and upon MMS’ sale was valued at more than twice the original price. If you had these types of positive outcomes and the industry was moving into a strategy of establishing key high cost healthcare items as Molina owned centers of excellence from which to impact the MLR, it does seem logical that you would attempt some acquisitions. Not making a judgement here, just offering another view
However, in going down this line of thought I am curious as to why we did not just encourage the team that first won PR for over 1 billion in revenue to continue in a bigger fashion.
Acquisitions take up a ton of time and resources. And they take corporate employee away from the core business the health plans. Remember the Long Beach hospital the Molina’s bought in California? Remember pathways the mental health provider? Or the 24 hour clinic in Detroit? All of them were acquisitions when John Molina was still here that took a ton of time and energy and ultimately sold later on.
Fools only think molina mgmt care about healthcare membership or employees
Many firms use acquisition as a means of growing when your business development is weak or you corporate team is weak. You are very astute to see that this avenue can produce results. Perhaps we should give our corporate team the benefit of the doubt and assume they did inquire. On the other side, being states we have no business - we could have perhaps grown our business along with the new business.