Issue link: https://beckershealthcare.uberflip.com/i/1034012
44 CFO / FINANCE Molina posts $202M profit after major restructure By Morgan Haefner M olina Healthcare saw its finances turn around in the three months ended June 30, after the health insur- er recorded a $230 million net loss in the second quarter of fiscal year 2017. The health insurer reported significant medical care costs and hefty impairment and restructuring charges in the second quar- ter of 2017 compared to the second quarter of 2018. However, Molina achieved net income of $202 million in the second quar- ter, thanks in part to a companywide restructuring plan. "Our second quarter results are a strong indication that the early stages of our margin recovery and sustainability plan are working," Joe Zubretsky, president and CEO of Molina, said in a statement. "Our focus on managed care fundamentals and a more rigorous performance management process is reflected in our improved earnings." Molina lowered its total operating expenses 14 percent year over year to $4.5 billion, down from $5.3 billion in the same period a year prior. In July 2017, Molina announced plans to eliminate roughly 1,400 employees to cut costs, as well as plans to exit some of the ACA markets where it offered individual plans. Molina's second quarter revenue remained largely unchanged year over year at $4.9 billion. The health insurer did see a $191 million increase in premium revenue in the second quarter of 2018 compared to the first quarter of 2018. n 8 things to know about CNO salaries By Megan Knowles T he median annual salary for CNOs in the U.S. is $125,857, according to data from Payscale. Here are eight things to know about average annual pay for CNOs: 1. CNO salary ranges from $88,204 to $197,096. 2. Bonuses for CNOs can reach up to $34,086. 3. CNO profit sharing can total up to $24,658. 4. Total pay for CNOs ranges from $87,414 to $206,931. 5. CNOs with less than five years of experience earn $113,000. 6. Mid-career CNOs, with five to 10 years of experi- ence, receive $116,000 in pay. 7. CNO salary for those with 10 to 20 years of expe- rience is $129,000. 8. CNOs with 20-plus years of experience earn $140,000. n Vermont board won't weigh in on hospital CEO compensation after request to freeze pay By Megan Knowles A er a Vermont mental health advocate urged healthcare regulators to establish a one-year freeze on hospital admin- istrators' salaries if they make more than $500,000 a year, regulators said they won't get directly involved in executive pay, VT- Digger reports. Kevin Mullin, chairman of the Green Mountain Care Board, which is charged with reducing the rate of healthcare cost growth in Ver- mont, said the board won't "micromanage" hospitals by getting di- rectly involved in executive pay or personnel issues. Mr. Mullin was responding to Ken Libertoff, former director of the Vermont Association for Mental Health, who asked the board to consider putting a one-year pay freeze on the salary of any hospital administrator making over $500,000. Mr. Mullin also said the care board is applying cost-control pressure to hospitals in other ways, partially by limiting hospitals' revenue and rates during the annual budget review process and through the board's dissemination of hospital salary information. "I think that we have started that process of shining the light on it," Mr. Mullin said. "ese are nonprofit hospitals run by their local commu- nities. I think that board members are hearing from their community members that maybe it's time to take a pause [on compensation]." Hospital executive pay in Vermont has gotten more attention recently due to a labor dispute between Burlington-based University of Ver- mont Medical Center and its unionized nurses. e union took issue with the hospital paying two top executives over $3 million in 2016. Mr. Libertoff also petitioned the board to take on a study of increases in UVM Medical Center and UVM Health Network administrative salaries "as compared to salary increases in other components of the hospital system." n