Molina Healthcare said Thursday it plans to make remote work permanent and will reduce its real estate footprint by two-thirds, which executives say will deliver substantial cost savings.
Molina, a Fortune 500 company and among the nation’s largest insurers, is the latest company to decide to walk away altogether as the COVID-19 pandemic forced offices to close, sending employees to work from home and upsetting traditional work routines.
“We intend to permanently transition to a remote work environment, a model we have been successfully working on for almost two years,” said CEO Joe Zubretsky told investors during an earnings call Thursday morning.
Molina is headquartered in Long Beach, Calif., with offices in New York, according to its latest annual filing with the U.S. Securities and Exchange Commission.
The health insurer employed around 14,000 people as of December 31, the filing said. Molina provides coverage to 5.1 million members in 19 states.
The insurer provided a more detailed account of its properties in a filing for fiscal year 2018. At the time, Molina said one of its lines of business leased a total of 66 buildings. The previous filing also indicated that the company owned the following buildings:
- A 186,000 square foot office building in Troy, Michigan.
- A 24,000 square foot mixed-use facility in Pomona, California.
- A 26,700 square foot data center in Albuquerque, New Mexico.
It is unknown if Molina still possesses these properties. They were not listed in the last annual filing, which no longer provides a detailed account of the real estate holdings as in previous years.
“We own and lease certain real estate to support the business operations of our reportable segments,” the latest annual report states.
On Wednesday, Molina reported that second-quarter net profit rose 34% to $248 million on higher revenue of $8 billion. Revenue growth was driven by enrollment gains in key segments like Medicaid and Medicare, in addition to the impact of recent acquisitions.