Inorganic Growth via Strategic Acquisitions

27 days ago

Steve Gorelik

"they will buy guys that have administrative expenses of 10 to 12%... and then they put them through the Molina playbook to bring those costs down."

Molina has been actively pursuing inorganic growth through bolt-on acquisitions. The strategy involves acquiring smaller, regional insurers with higher administrative expense ratios and then applying its efficient operating playbook to lower those costs. This approach not only increases its member base but also helps improve overall profitability.

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