Business Context and Reporting Period
This Form 8-K was filed by Molina Healthcare, Inc. on April 6, 2012, to disclose a material event under Regulation FD. The report concerns the company's Ohio health plan, Molina Healthcare of Ohio, Inc.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the current period. The only financial metric disclosed is the reaffirmed earnings guidance for fiscal year 2012.
Material Changes
- Ohio Contract Loss: The Ohio Department of Jobs and Family Services (ODJFS) notified Molina that its Ohio health plan was not selected to participate in the recently issued Ohio Medicaid Managed Care Plan Request for Applications (RFA).
- Contract Expiration: As a result of the non-selection, the existing contract with the state of Ohio will expire without renewal on December 31, 2012.
- Appeal Evaluation: The company is currently evaluating the RFA scoring and considering whether to pursue its rights of appeal.
Guidance, Outlook, and Risks
Guidance: Despite the loss of the Ohio contract, the company is affirming its previously issued guidance for fiscal year 2012 earnings of $1.75 per diluted share.
Risks and Contingencies: The filing includes a "Safe Harbor" statement noting that forward-looking statements regarding the 2012 EPS guidance, the potential appeal of the RFA results, and the contract expiration are subject to risks and uncertainties. Actual results may differ materially from projections. The company disclaims any obligation to update these statements.
Investor Verification Checklist
- Verify the status of the company's appeal regarding the Ohio RFA scoring.
- Monitor the impact of the Ohio contract expiration on the company's ability to meet the affirmed $1.75 diluted EPS guidance for fiscal year 2012.
- Review the risk factors detailed in the company's Annual Report on Form 10-K for the year ended December 31, 2011.