Molina Healthcare saw its finances turn around in the three months ended June 30, after the health insurer recorded a $230 million net loss in the second quarter of fiscal year 2017.
The health insurer reported significant medical care costs and hefty impairment and restructuring charges in the second quarter of 2017 compared to the second quarter of this year. However, Molina achieved net income of $202 million in the most recent quarter, thanks in part to a companywide restructuring plan.
"Our second quarter results are a strong indication that the early stages of our margin recovery and sustainability plan are working," Joe Zubretsky, president and CEO of Molina, said in a prepared statement. "Our focus on managed care fundamentals and a more rigorous performance management process is reflected in our improved earnings."
Molina lowered its total operating expenses 14 percent year over year to $4.5 billion, down from $5.3 billion in the same period a year prior. In July 2017, Molina announced plans to eliminate roughly 1,400 employees to cut costs, as well as plans to exit some of the ACA markets where it offered individual plans.
Molina's second quarter revenue remained largely unchanged year over year at $4.9 billion. The health insurer did see a $191 million increase in premium revenue in the second quarter of 2018 compared to the first quarter of 2018.
More articles on payers:
CVS-Aetna deal sidesteps one antitrust hurdle: 5 things to know
Montefiore Health System, Aetna may end contract in 1 month
BCBS Association partners with Fitbit