Molina Healthcare, Inc. (NYSE:MOH) Q2 2020 Earnings Conference Call - Final Transcript

Jul 30, 2020 • 08:00 pm ET

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Molina Healthcare, Inc. (NYSE:MOH) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Stephen Tanal

call all of those non-organic and so M&A seems to be contributing about $2.5 billion which implies about $1.2 billion net organic, which I think is organic growth of about 6.6%, which still, is a little bit conservative. But I just wanted to say is that math right and is that kind of how you guys are thinking about it or is there anything else you'd want to steer us there?

Executive
Joseph Zubretsky

You have the right model in your thinking. That is the model we've used, and again it's an outlook. It's not a pinpoint estimate. We believe, not believe, we couched it as conservative. We wanted to give you and our investors a very clear indication of where the trajectory of our top line is going. We will refine this estimate as we go forward, when we go through the third and fourth quarters.

Who knows where our Medicaid membership will be, we could have another 150,000 members by the end of next quarter. We just don't know. So we will refine the organic aspects of this, but the inorganic aspects are pretty clear. And you're right, you have to factor in the $400 million Puerto Rico exit as an offset to some modestly calibrated organic growth.

Analyst
Stephen Tanal

Yes, I missed that. And I guess just lastly, when might we learn about Kentucky and whether they're going to let you keep Passport's enrollment?

Executive
Joseph Zubretsky

Well there is - I don't want to comment on the regulatory process, but we're working through the regulatory process on the contract novation and on the after the process of getting approval to buy the Passport infrastructure. Open enrollment starts, I think it's mid-October. So we're hoping to have this whole thing included either by the end of the summer or early in September, but I can't predict when that will actually happen. But we're working hard on it and the earlier it can get done, the more stable that membership will be. Those members love the Passport brand. They like being in that plan. The state understands that. So I think we're all aligned in our intention to want to keep those members in the Passport brand, in the Passport care plan and in the Passport network.

Analyst
Stephen Tanal

Great, thank you, again, I appreciate it.

Operator
Operator

[Operator Closing Remarks]