Molina Medical Management, Inc. plans to implement dozens of Sacramento layoffs, with most of the affected employees transitioning into jobs with Golden Shore Medical.
The Sacramento layoffs by Molina will hit employees after the company recently made a deal with Golden Shore. Golden Shore purchased Molina’s 17 clinics in California, prompting the transition and layoffs. Around 300 employees across the state worked at Molina clinics. Of the 95 Molina employees affected by the Sacramento layoffs, however, many will find work with Golden Shore.
“As of January 1, 2018, Golden Shore Medical Group has assumed full operational control of the 17 California Molina Medical clinics formerly operated by the company,” Molina Healthcare spokesperson Leidy Arévalo said in an email, as reported by the Sacramento Business Journal. “Many of our staff have transitioned to Golden Shore and we will be working closely with Golden Shore to ensure a successful transition.”
Molina works across the country providing healthcare services. It served a reported 683,000 people in California at the end of 2016. The company, however, has been making cuts to its workforce in California for a number of months now. For instance, in September, the company cut nearly 350 employees in Long Beach as part of two separate rounds of cuts.
The Sacramento layoffs, then, represent the culmination of the company’s transition out of the healthcare market in California. The healthcare industry as a whole has found itself in difficult times over the past year. Fighting over the Affordable Care Act created an unstable situation in regards to healthcare legislation in the U.S., which has kept some people from seeking medical attention. The decline in customers, combined with rising drug prices, has put many companies in the industry on the back foot, leading to industry-wide layoffs.
“Molina to transition 95 Sacramento employees to Golden Shore Medical,” Sacramento Business Journal, January 10, 2018.