John Molina, the former chief financial officer at Molina Healthcare, has resigned from its board of directors; his exit leaves the company without any members of its founding family on staff.
John Molina has been on the company's board since 1994, according to an announcement. He was fired from his position as CFO in May of last year, alongside his brother, then-CEO J. Mario Molina, M.D. The pair are sons of the company's founder, C. David Molina.
The Molina brothers were fired following financial strife at the company. Joseph W. White replaced John Molina as CFO.
Molina said in his resignation letter, dated Feb. 23 in a filing with the Securities and Exchange Commission, that it has been his "life's work to see my father's vision come to fruition."
"This letter serves as a bittersweet reminder that I am the last Molina family member still associated with the company our family built," Molina said. "I am proud of all that we and the employees have accomplished. Molina's reputation for quality and devotion to our patients remains unparalleled."
My brother, John Molina, resigned from the board of Molina Healthcare today. Nearly 40 years after my father founded the company, not a single member of the family works there. Once, we all did.— Mario Molina, MD (@drjmariomolina) February 26, 2018
J. Mario Molina also stayed on the board of directors after his ouster, and he resigned from that role in December. He has moved on to take the helm at Golden Shore Medical Group. J. Mario Molina has also been outspoken about his firing over the past year, implying that his political outspokenness—which including criticizing the GOP's American Health Care Act—got him fired.
Molina Healthcare continued to struggle financially for much of 2017, posting a $230 million loss in the second quarter of 2017 that led it to pull out of some of the Affordable Care Act's exchanges. It lost $512 million in total in 2017 and is continuing to re-examine its ACA exchange business.
Molina lost out on its Medicaid managed care contract in New Mexico and has challenged the state government in court over the contracts, though its managed care plans in New Mexico were not profitable. A state judge dismissed the suit Monday, saying the court lacks jurisdiction in the case, according to an article from the Santa Fe New Mexican.