Increasing Membership Helps Lift Molina Healthcare’s Profit
Molina Healthcare Inc. credited membership growth and higher premiums as it reported a 39% jump in its first-quarter profit Tuesday.
The Long Beach-based managed-healthcare company reported net income of $11.1 million, or 43 cents a share, up from $8 million, or 40 cents, a year earlier. Revenue climbed 14% to $217.9 million from $191.4 million.
Membership grew 14% and contributed $26.9 million to revenue in the quarter. Molina said higher premiums in Washington and Michigan added $7.7 million, more than offsetting a decline in premiums in California.
The company, which specializes in providing managed healthcare to low-income residents in several states, has grown rapidly through acquisitions since going public last July.
“These results demonstrate that our core operations remain strong and stable as we integrate our recent acquisitions,” said Dr. J. Mario Molina, the company’s chief executive. “We have the ability to effectively manage current operations while at the same time laying the foundations for enhanced performance from acquisitions consummated later in the year.”
Molina said it expected its purchase of Albuquerque, N.M.-based Health Care Horizons Inc. to close in the third quarter, along with its acquisition of the Medicaid and Basic Health plan business of Blue Cross in Washington.
Molina also confirmed its earlier guidance for full-year net income of $47.5 million to $50.2 million.
Shares of Molina rose 58 cents to $33.48 on the New York Stock Exchange. Molina’s shares have climbed 33% this year.
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