LONG BEACH, Calif.--(BUSINESS WIRE)--Feb. 6, 2019--
Molina Healthcare, Inc. (NYSE: MOH) today announced that it has advanced
its information technology (IT) capabilities and operational efficiency
by signing an agreement with Infosys, a global leader in next-generation
digital services and consulting. Under the agreement, Infosys will
manage Molina’s IT infrastructure functions, including IT operations,
end-user services, and data centers. With this agreement, Molina expects
to improve the reliability of its IT functions to better serve Molina’s
members, providers, and state customers while also realizing cost
savings beginning in 2019.
“Bringing on a best-in-class partner like Infosys to help us manage our
technology infrastructure will support the evolving needs of our
business while delivering significant cost savings,” said Jim Woys,
executive vice president of health plan services for Molina Healthcare,
Inc. “This agreement is another step forward in helping us sustain and
expand our margins as we lay the foundation for profitable growth in the
coming years.”
“We are proud to be associated with a progressive health care company
like Molina, and be a strategic partner in their infrastructure
transformation,” said Mohit Joshi, president, Infosys. “By maximizing
the potential of the cloud, this transformation will help Molina
accelerate their digital journey.”
As a result of a competitive RFP process involving several bidders,
Molina ultimately selected Infosys based on its demonstrated expertise,
pricing, and commitment to partnering on transformation and cloud
migration. The agreement with Infosys is only one component of Molina’s
broader IT transformation. It represents the continued execution of
Molina’s margin recovery and sustainability plan and positions Molina
for future growth.
About Molina Healthcare
Molina Healthcare, Inc., a FORTUNE 500 company, provides managed health
care services under the Medicaid and Medicare programs and through the
state insurance marketplaces. Through its locally operated health plans,
Molina served approximately 4 million members as of September 30, 2018.
For more information about Molina, please visit molinahealthcare.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995: This press release contains “forward-looking
statements” regarding the entry by Molina into an agreement with Infosys
to manage Molina’s IT infrastructure functions. All forward-looking
statements are based on current expectations that are subject to
numerous risk factors that could cause actual results to differ
materially. Such risk factors include, without limitation:
-
the parties devote the resources necessary to efficiently,
effectively, and successfully carry out the transition of Molina’s IT
infrastructure activities to Infosys in a coordinated and timely
manner, including securely transferring information and data between
the parties, and that any delays in the start of the infrastructure
services do not materially impact the amount of the intended cost
savings and other intended benefits of the Infosys transaction;
- Infosys performs contracted functions and services in a timely,
satisfactory and compliant manner, including with respect to data
security, and any failures do not result in regulatory enforcement
actions, threaten the security and confidentiality of Molina’s
information and data, or result in claims by members and providers
against Molina;
-
the contractual remedies and indemnification obligations for Infosys’
failures fully compensate Molina for any losses suffered as a result
of Infosys’ failure to satisfy their obligations to Molina;
-
changes in Infosys’ operations, security posture or vulnerabilities,
financial condition, or other matters outside of Molina’s control do
not adversely affect the provision of infrastructure services to
Molina;
-
Molina reduces administrative expenses and improves the reliability of
its IT functions through the Infosys transaction while maintaining
targeted levels of service and operating performance;
-
Molina successfully recognizes the intended cost savings and other
intended benefits of the Infosys transaction; and
-
Molina is able to replace the services provided by Infosys in a timely
manner and on favorable terms and conditions upon expiration or
termination of the Agreement.
Additional information regarding the risk factors to which we are
subject is provided in greater detail in our periodic reports and
filings with the Securities and Exchange Commission, including our most
recent Annual Report on Form 10-K. These reports can be accessed under
the investor relations tab of our website or on the SEC’s website
at sec.gov. Given these risks and uncertainties, we cannot give
assurances that our forward-looking statements will prove to be
accurate, or that any other results or events projected or contemplated
by our forward-looking statements will in fact occur, and we caution
investors not to place undue reliance on these statements. All
forward-looking statements in this press release represent our judgment
as of the date hereof, and we disclaim any obligation to update any
forward-looking statements to conform the statement to actual results or
changes in our expectations that occur after the date of this press
release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190206005776/en/
Source: Molina Healthcare, Inc.
Molina Healthcare Contacts:
Ryan Kubota
Investor
Relations
562-435-3666
Caroline Zubieta
Public
Relations
562-951-1588
