Current $100M+ funding construct driving non-optimized vendor allocation.
We are being told to funnel majority of contracts to vendor Infinite to absorb allocated budget.
COO (acting CIO) -led directive reinforcing allocation bias, persisting despite Amir's (who favored Infinite along with COO) departure.
Infinite dominance across SOWs continues from COO, limiting competitive pricing and innovation.
Centralized pressure to exhaust budget outweighing value-based decision-making.
Immediate need to reintroduce competitive sourcing and benchmark discipline.
Opportunity to diversify vendor base and improve cost efficiency (20–30% potential).
Establish governance guardrails to balance utilization vs. value realization.
Molina funding structure (‘use-it-or-lose-it’) for Infinite creating forced spend dynamics.
Competitive procurement effectively bypassed in favor of Infinite resulting in suboptimal cost outcomes in a thin-margin environment of Medicaid/Medicare LOB.
Heightened risk of inefficiency, vendor lock-in, and reduced governance rigor.
No wonder Molina stock is beaten down heavily due to this wastage along with host of other issues. CEO & COO compensation per year hits $50 Mil.
1 reply
Infinite or any other vendor would be a similar wolf in different clothing. as more of a for-profit entity, the need to justify the spend is less. someone has avested interest or is friends with can be covered up by misaligned competitive quotes or less informed proposals.
RFP/RFQs are a wellknown process and there are those who know how to deliver a desired result. Theres no magic to favoring a vendor. if there was magic everyone would be using it.
its a tough environment right now for the public healthcare business. clearly theres a need to hang onto funding where it exists.