Molina Healthcare Loses Louisiana Medicaid Contract–Has 15 Days To Appeal
Posted Jun 13 2011 11:34am
The business was secured when Molina acquired Unisys last year and according to the article below from WSJ they have time to appeal. Lately we know all about appeals and how long some can take, look at the Tri-Care bids with the government for one very complicated bidding and appealing process and some of that it still going on.
Molina is based here in Long Beach California and made big news with their focus on their telehealth program which is a good thing when it comes to bringing care to those in rural areas or anyone who can’t get to see a physician. The problem here is that it takes time to get the Health IT systems up and going. Now that everything connects through the web, just like everything else, it’s complicated and requires a lot more planning up front.
Molina experienced some rocky times right out of the barrel with providers in Idaho for one example as the check don’t roll out until the IT Infrastructure is in place to make it happen, those algorithms once again. Today especially with mergers and acquisitions the IT folks play a more important role than they ever have. BD
NEW YORK (Dow Jones)--Managed-care provider Molina Healthcare Inc. (MOH) said Friday that it has lost a Louisiana Medicaid contract that earned it $32 million in revenue in last year.
Molina's shares slid 2.7% to $25.62 but are still up 38% so far this year.
The company said in a filing with the Securities and Exchange Commission that its Medicaid health information management unit, Molina Medicaid Solutions, was notified Thursday that Louisiana intends to award the contract for a replacement Medicaid management information system to Client Network Services Inc.
Molina Medicaid Solutions, which provides business processing and information technology administrative services to Medicaid agencies, has 14 days to submit a protest, according to the filing.