Mario Molina, MD, served as CEO of Molina Healthcare from 1996 until the board unexpectedly fired him and his brother John Molina, the company's CFO, in 2017. Dr. Molina and the company are still at odds, according to the Los Angeles Times.
Here are five things to know:
1. Dr. Molina acquired 16 medical clinics in California from Molina Healthcare after he was fired. The clinics operate under the name Golden Shore Medical Group.
2. Molina Healthcare imposed a low reimbursement rate on Golden Shore Medical Group this year, and contract negotiations for 2019 have reached an impasse, according to Dr. Molina.
3. Molina Healthcare has decided to let its contract with Golden Shore Medical Group lapse as of Feb. 1, according to the Los Angeles Times. If the contract isn't renewed, 79,000 patients who see Golden Shore Medical Group's physicians will have to find new physicians.
4. Regarding Molina Healthcare denying better contract terms for Golden Shore Medical Group, Dr. Molina told the Los Angeles Times: "It appears to be not so much a business decision, but a spiteful, personal decision. They're effectively trying to drive us out of business."
5. A Molina Healthcare spokesperson told the Long Beach Post that the company's top priority is "ensuring our members have access to reliable, high-quality care." Golden Shore Medical Group requested "an insupportable out-of-market rate increase," the spokesperson said regarding Molina Healthcare's decision not to renew its contract with the medical group.
Access the full Los Angeles Times article here.
Access the full Long Beach Post article here.