Dr. J. Mario Molina has resigned from the board of the health insurer his father founded, Molina Healthcare said Tuesday.
The insurer said its former CEO, who led the company from 1996 until May 2017, will pursue other opportunities. Molina is already in the process of purchasing 17 primary-care clinics from the insurer.
"As a natural progression of his involvement in the company for more than 20 years, we understand and respect Dr. Molina's decision, and we thank him for all of his contributions," said Dale B. Wolf, chairman of the Molina Healthcare board of directors.
The politically outspoken Mario Molina and his brother, Chief Financial Officer John Molina, were unexpectedly ousted from Molina Healthcare in May 2017 due to what the insurer called "disappointing financial performance." Mario Molina was replaced by former Aetna Chief Financial Officer Joseph Zubretsky in October.
Molina Healthcare, a Medicaid managed-care insurer with a significant presence in the Affordable Care Act exchanges, announced plans to restructure the company after the Molina brothers departed in order to improve efficiency and cut millions in costs.
The Long Beach, Calif.-based insurer recorded a net loss of $97 million in the third quarter of 2017 as its restructuring efforts continued to drag down earnings.
