Molina Healthcare, Inc. (MOH) is a a healthcare service provider to Medicaid patients (low-income families and individuals) in California. The company is headquartered in Long Beach, California and was established by C. David Molina in 1980 as a healthcare service provider to Medicaid patients (low-income families and individuals) in California. Buoyed by an influx of IPO capital in July 2003, the company has grown aggressively via acquisitions and currently operates health plans in several states, including Washington, Michigan, Utah, and New Mexico, as well as 19 primary care clinics located in Northern and Southern California. The company derives revenues from three primary sources: premiums, "other operating revenues," and investment income. Premium revenues represent fees paid by the individual states to coordinate respective Medicaid programs. Other operating revenues include fees-for-service generated by Molina Healthcare's clinics in California and savings-sharing revenue in California and Michigan, which are incentive payments received from the states if in-patient medical costs are less than prescribed amounts.
Currently, the top two executives at the company are David Molina's two sons: President and CEO, J. Mario Molina, M.D. and CFO John Molina. The Molina family owns approximately 60% of the company s stock. A key driver of increasing membership numbers has been via acquisitive growth. In 2004, acquisitions included the following: Healthy Options (Medicaid) and Basic Health Plan contracts of Premera Blue Cross (effective June 1, 2004 and adding approximately 56,000 members) Health Care Horizons, Inc., or HCH, the parent company of Molina Healthcare of New Mexico, Inc., a New Mexico corporation (effective July 1, 2004) Wellness Plan of Michigan (effective October 1, 2004 and adding approximately 73,000 members) and Sharp's Medi-Cal (Medicaid) and Healthy Families Program (SCHIP) (announced November 22, 2004) in California.