Business Analysis of Molina Healthcare

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Molina Healthcare

MOLINA HEALTHCARE

Business Overview

Molina Healthcare, Inc. provides Medicaid-related solutions to meet the health care needs of low-income families and individuals; and to assist state agencies in their administration of the Medicaid program in the United States. It operates through three segments: Health Plans, Molina Medicaid Solutions, and Other. The Health Plans segment operates health plans in 12 states. As of December 31, 2016, this segment served approximately 4.2 million members who were eligible for Medicaid, Medicare, and other government-sponsored health care programs. The Molina Medicaid Solutions segment offers business process, information technology development, and administrative services to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West Virginia, as well as the U.S. Virgin Islands; drug rebate administration services in Florida; and other services, including hosting and support, and maintenance. The Other segment provides behavioral health and social services. The company offers health care services for its members through contracts with physicians, hospitals, and other providers. Molina Healthcare, Inc. was founded in 1980 and is headquartered in Long Beach, California.

Molina Healthcare

Molina Healthcare


R&P Rank: 154
Sector: Healthcare Services
Industry:Healthcare Payers
H.Q Location:California
Website: www.molinahealthcare.com
Company Address:
200 OCEANGATE, SUITE 100, LONG BEACH CA 90802
Ph:562-435-3666

Business Analysis of Molina Healthcare

The Healthcare Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Molina Healthcare compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Molina Healthcare to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Molina Healthcare with an interactive chart.

  1. Revenue Growth: Molina Healthcare reported a revenue growth of 25.4% year-on-year during 2016. Healthcare Payers Industry grew at 13.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Molina Healthcare spent 89.7% of its total revenues on COGS. Healthcare Payers industry average (COGS share of revenue) in the same period was 78.2%
  3. R&D share of Revenues: Molina Healthcare R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Molina Healthcare spent 7.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Healthcare Payers industry average SG&A spending in the same period was 15.1%
  5. Inventory share of Revenues: Molina Healthcare Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Molina Healthcare invested 13.0% of its total revenues on Accounts Payable (A/P) Healthcare Payers industry average Accounts Payable investment in the same period was 13.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Molina Healthcare invested 5.5% of its total revenues on Accounts Receivable (A/R). Healthcare Payers industry average Accounts Receivable investment in the same period was 9.0%
  8. PP&E share of Revenues: As a percentage of revenue, Molina Healthcare invested 2.6% of its total revenues on Property, Plants, and Equipments (PP&E). Healthcare Payers industry average PPE investment in the same period was 2.6%
  9. Intangibles share of Revenues: As a percentage of revenue, Molina Healthcare invested 4.3% of its total revenues on Intangibles. Healthcare Payers industry average Intangibles investment in the same period was 21.9%
  10. Net Margins: Molina Healthcare Net Margins in the year 2016 were 0.3%. Healthcare Payers industry average Net Margins in the same period were 3.0%

Sector and Industry Association of Molina Healthcare

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Molina Healthcare is associated with Healthcare Sector Group, Healthcare Services Sector, and Healthcare Payers Industry.

Healthcare Services sector is comprised of the following industries: Drug Stores, PBM and Distributors; Healthcare Payers; Healthcare Providers; Medical Software; Healthcare Research Services. The definitions for each of the industries is as follows:

  • Drug Stores, PBM and Distributors industry includes nationwide drugstore chains, pharmacy benefit management (PBM) companies, and drug distributors. Drug stores also offer walk-in clinics and related pharmacy services. Distributors distribute branded and generic pharmaceutical and other healthcare products to hospitals, pharmacies and other healthcare providers. PBMs are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims.
  • Healthcare Payers industry includes healthcare insurance companies that finance or reimburse the cost of health services. These companies also offer collaborative care, population health management, healthcare technology, Pharmacy Benefit Management, analytics, consulting and administrative services.
  • Healthcare Providers industry consist primarily of hospitals but recent changes in the health services industry have contributed to both increasing numbers of other types of facility providers. Companies in this industry include traditional healthcare providers and emerging healthcare facility providers like ambulatory surgery centers, behavioral healthcare facilities, dialysis clinics, home health care companies and others.
  • Medical Software industry includes companies that offer any software item or system used within a healthcare context. These companies offer standalone software used for diagnostic, therapeutic purposes, clinical financial and operational purposes.
  • Healthcare Research Services industry includes companies that offer biopharmaceutical development services, commercial outsourcing services; commercial pharmaceutical sales and service organizations, consulting, health information analytics and technology consulting.

Industry Ranking of Molina Healthcare

With $17.8 billion revenues, Molina Healthcare ranked number 7 of all the companies in the US Healthcare Payers industry. There were a total of 14 public companies in the US Healthcare Payers industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Healthcare Payers industry by revenues during 2016 were:

  1. UnitedHealth Group ($184.8 billion)
  2. Anthem ($84.9 billion)
  3. Aetna ($63.2 billion)
  4. Humana ($54.4 billion)
  5. Centene ($40.6 billion)
  6. Cigna ($39.7 billion)
  7. Molina Healthcare ($17.8 billion)
  8. WellCare ($14.2 billion)
  9. Magellan Health ($4.8 billion)
  10. Triple-S Management ($3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Molina Healthcareand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of molina-healthcare

Humana (HUM) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Humana Inc with $54 billion revenues in the year 2016 was the number 4 Healthcare Payers company. Read this report to know the top competitors of Humana and identify growth and cost optimization opportunities of Humana

Centene (CNC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Centene Corp with $41 billion revenues in the year 2016 was the number 5 Healthcare Payers company. Read this report to know the top competitors of Centene and identify growth and cost optimization opportunities of Centene

Cigna (CI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Cigna Corp with $40 billion revenues in the year 2016 was the number 6 Healthcare Payers company. Read this report to know the top competitors of Cigna and identify growth and cost optimization opportunities of Cigna

WellCare (WCG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

WellCare Health Plans, Inc. with $14 billion revenues in the year 2016 was the number 8 Healthcare Payers company. Read this report to know the top competitors of WellCare and identify growth and cost optimization opportunities of WellCare

Magellan Health (MGLN) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Magellan Health Inc with $5 billion revenues in the year 2016 was the number 9 Healthcare Payers company. Read this report to know the top competitors of Magellan Health and identify growth and cost optimization opportunities of Magellan Health

Triple-S Management (GTS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Triple-S Management Corp with $3 billion revenues in the year 2016 was the number 10 Healthcare Payers company. Read this report to know the top competitors of Triple-S Management and identify growth and cost optimization opportunities of Triple-S Management

Revenues Analysis

Molina Healthcare (MOH) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Molina Healthcare Inc (MOH) from 2012 to 2016. Molina Healthcare generated a total of $17.8 billion revenues during 2016. Molina Healthcare reported a revenue growth of 25.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Molina Healthcare (MOH) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Molina Healthcare Inc (MOH) from 2002 to 2016. Molina Healthcare generated a total of $17.8 billion revenues during 2016. Molina Healthcare reported a revenue growth of 25.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Molina Healthcare (MOH) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Molina Healthcare Inc (MOH) revenue growth with Healthcare Payers industry growth during the last five years from 2012 to 2016. Molina Healthcare reported a revenue growth of 25.4% year-over-year during 2016. The Healthcare Payers industry growth was 13.5% year-over-year during 2016. Molina Healthcare growth was faster than the industry during 2016.

Profit Analysis

Molina Healthcare (MOH) Net Profit And Net Margin From 2012 To...

This report provides the last five years net profit and net margin of Molina Healthcare Inc (MOH) from 2012 to 2016. Molina Healthcare reported a total net income of $52 million during 2016. Mol