Molina Healthcare, Inc. Confirms 390 Layoffs in California in September 2017

Moline Healthcare Inc. Layoffs in September
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Molina Healthcare, Inc. (NYSE:MOH) has announced almost 400 layoffs in the month of September. Throughout the month, the Long Beach-based health insurer issued 13 Worker Adjustment and Retraining Notification (WARN) notices with the state of California, affecting 390 employees. All of the layoffs are permanent.

During a press conference to discuss the company’s second-quarter financial results, including the $230.0-million loss, interim CEO Joseph White said the company has “taken aggressive and urgent steps to substantially improve [its] financial performance going forward.”

About Molina Healthcare, Inc.

Molina Healthcare, Inc. is a healthcare company that provides healthcare services to almost five million people in 15 states who obtain care through Medicare, Medicaid, and other government-funded programs.

The company operates through three segments: Health Plans, Molina Medicaid Solutions, and Other. This includes the State Children’s Health Insurance Program (SCHIP), a health insurance plan for children under the age of 19 who are not currently covered by health insurance, U.S. citizens, or legal residents.

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In September, Molina Healthcare Inc. issued three WARN notices affecting 198 employees.

Molina Medical Management provides administrative, facilities, support staff, billing, and collection services to the company’s Molina Medical Group clinics and other practices and groups. In September, Molina Medical Management issued four WARN notices affecting 18 employees.

Meanwhile, Molina Healthcare of California, Inc., issued six WARN notices that resulted in the loss of 174 jobs.

Molina Healthcare’s Previously Announced Job Cuts

The writing of the healthcare job cuts at Molina have been on the wall for quite some time now. According to an internal company memo back in July, the company said it was looking to slash around 1,400 jobs, or 20% of its workforce, over the coming months.

The decision comes after Molina reported a fourth-quarter loss related to individual plans that were created under President Obama’s Patient Protection and Affordable Care Act (affectionately referred to as “Obamacare”). The company fired its then-CEO Mario Molina a few months later.

In September, the rumors became reality when Molina announced it was laying off 1,500 people from its corporate department and health plans across the country. In addition to layoffs in Los Angeles County, the company is looking to axe jobs in South Florida and elsewhere.

Molina Healthcare also said it won’t be offering government-subsidized marketplace Obamacare plans in Utah and Wisconsin.

More Health Sector Layoff Notices in California in September 2017

Molina Healthcare is not alone when it comes to downsizing. The healthcare sector has been besieged by layoffs.

In September, Providence Saint Joseph Medical Center announced it will lay off 59 people in October. Most of the employees being let go are from Los Angeles.

Los Angeles County Tops California Health Sector Layoffs in Sept. 2017

When it comes to layoffs in the California healthcare sector, Los Angeles County leads the way. Of the 449 announced healthcare layoffs in September, 265, or nearly 60%, took place in Los Angeles County.

While the broader healthcare sector remains healthy, the industry is still experiencing a large number of layoffs. And the number of healthcare layoffs could rise significantly. The Republican-led House is determined to repeal Obamacare, a move that would scale back federal funding for healthcare, especially to Medicaid.

This would result in job losses at hospitals, retirement homes, and other health facilities. According to a report from George Washington University’s Milken Institute School of Public Health and the Commonwealth Fund, 1.45-million jobs could vanish if the Senate votes to repeal Obamacare. That means one out of every 20 healthcare jobs could disappear by 2026.

Sources

WARN Report,” Employment Development Department, State of California, last accessed September 27, 2017.

Molina Healthcare Announces Second Quarter Results and Restructuring Plan,” Molina Healthcare, Inc., August 2, 2017.

The Better Care Reconciliation Act: Economic and Employment Consequences for States,” The Commonwealth Fund, last accessed September 27, 2017.

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