Molina Healthcare Inc. saw the value of its stock plunge after Ohio dropped it from its stable of companies that contract the management of Medicaid patients in the state, the Los Angeles Times reported today.
Ohio also dropped Centene Corp. and Amerigroup Corp. in an effort to cut its health-care expenses by $1.5 billion, the Times said.
Related story: "Minorities More Optimistic on Health-care Reform"
Molina's shares dropped 26.7 percent, from $35.01 to $25.65. The Ohio contracts accounted for 22 percent of Molina's revenue from premiums and 30 percent of its profit, according to the Times.
Molina, based in Long Beach, Calif., was the No. 1 company on the 2010 HispanicBusiness 500 directory, and had $3.1 billion in revenue in 2009.
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