Molina ousts CEO and CFO, citing finances

Long Beach, Calif.-based Molina Healthcare's board of directors has fired longtime CEO J. Mario Molina, MD, and his brother John Molina, the company's CFO. 

The managed care company blamed the leadership shakeup on its poor financial performance.

"In light of the company's disappointing financial performance, the board has determined to change leadership in order to drive profitability through operational improvements," said Dale B. Wolf, Molina's newly appointed board chairman. "With the industry in dynamic transition, the board believes that now is the right time to bring in new leadership to capitalize on Molina's strong franchise and the opportunities we see for sustained growth."

Molina had a rough fourth quarter, ending the period with a $91 million net loss. However, the company bounced back in the first quarter of this year. On Tuesday, Molina said it recorded net income of $77 million in the first quarter of 2017, more than triple the $24 million it reported in the same period of the year prior. 

The board named Molina Chief Accounting Officer Joseph W. White interim president and CEO. He will also serve as the company's permanent CFO. 

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