Maximus Inc.

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MAXIMUS Inc.
Type Public
Traded as NYSEMMS
Industry Healthcare, Business Services
Government contractor
Founded 1975
Key people Richard Montoni, President & Chief Executive Officer
Revenue Increase US$1.05 billion (FY2012)[1]
Employees 8,657
Website www.maximus.com

Maximus Inc., trademarked as MAXIMUS, is an American for-profit privatizing company that provides business process services to government health and human services agencies in the United States, Australia, Canada, Saudi Arabia, and the United Kingdom. MAXIMUS focuses on administering government-sponsored programs, such as Medicaid, the Children’'s Health Insurance Program, health care reform, welfare-to-work, Medicare, child support enforcement, and other government programs. The company is based in Reston, Virginia, has 8,657 employees, and reported annual revenue of $1.05 billion in fiscal year 2012.[2]

History

MAXIMUS was founded by David V. Mastran, a former employee of the U.S. Department of Health, Education, and Welfare. He started MAXIMUS to bring value-added services, analytical business thinking, and disciplined management approaches to government Health and Human Services programs nationwide.[3] The company went public on June 13, 1997.[4] In that same year, MAXIMUS was selected by the State of California to help administer its Medicaid managed care program.[5]

In 2004, David Mastran retired and Lynn Davenport became Chief Executive Officer. Davenport was terminated in April 2006 for violating the company's code of conduct.[6] Richard Montoni, former Chief Financial Officer for MAXIMUS, was named CEO on April 24, 2006. Montoni has been credited with improving the performance of the company[7] and was named one of Tech's Top Turnaround Artists by Bloomberg.[8] In 2007, the company announced it was exploring strategic alternatives, including sale,[9] but ultimately chose to divest several business lines and focus its business in health and human services business process management.[10]

In 2010, MAXIMUS acquired DeltaWare, a developer of health administration management systems for the Canadian government health care market.[11] In 2012, MAXIMUS acquired Denver-based Policy Studies Incorporated (PSI) for $67 million.[12] In 2013, MAXIMUS acquired UK-based Health Management Ltd.(HML).[13]

In recent years, the company has focused on health and human services, divesting many of its business lines not related to these industries.[14] On April 30 of 2008, the organization sold its Security Solutions division.[15] On September 30, 2008, the Company sold its Justice Solutions, Education Systems, and Asset Solutions divisions.[16] The Company also completed the sale of its ERP division in 2010.[17]

Services

Human services

MAXIMUS operates a variety of human services programs, including welfare-to-work (such as the Ticket to Work program),[18] child support enforcement, child care, child welfare, specialized consulting and K-12 special education software and higher education consulting.

In 2011, MAXIMUS was recognized as the top performing provider for welfare-to-work services under the United Kingdom's Flexible New Deal program, helping job seekers into long-term sustained employment.[19] Following the Flexible New Deal, the United Kingdom government unveiled a replacement program, called the Work Programme, that created welfare reform changes.[20] MAXIMUS serves as a contractor in three regions under the UK's Work Programme initiative.[21] In 2012, the company launched its first welfare-to-work program in Canada[22] and expanded its Australia operations with a five-year contract to help people with disabilities find employment.[23]

MAXIMUS also provide services for child support programs. In 2009, the company won a five-year contract to collect and enforce child-support collections in Shelby County, Tennessee.[24] MAXIMUS launched Project NOW (Negotiating Outstanding Warrants), an initiative that collected more than $35,000 to help nearly 100 parents in Shelby County get back on track after missing child support payments.[25]

Akbar Piloti is President and General Manager of the Human Services Segment.[26]

Health services

MAXIMUS provides a variety of services for government health programs including Medicaid, the Children's Health Insurance Program (CHIP), Medicare and health insurance exchanges as required under the Affordable Care Act.[27] MAXIMUS serves on the Enroll America advisory council.[28][29]

The company is the largest provider of administrative services for Medicaid and CHIP in the United States, serving more than 50% of the market.[30] In September 2012, the Illinois Department of Healthcare and Family Services awarded MAXIMUS Health Services a two-year contract, $76.8 million contract to help the state with its Medicaid program.[31] That same month, MAXIMUS announced a $23.5 million contract with the State of Oklahoma to operate a customer relationship management system for SoonerCare, the state's Medicaid program, and Insure Oklahoma, a program that provides employers with subsidies to help buy private market health insurance for their low- to moderate-income employees.[32]

MAXIMUS is also the largest provider of privatized health insurance appeals to Medicare and in 2012 it expanded its growing Federal operations, bringing 500 local jobs to economies in Upstate New York and Pennsylvania, including more than 325 jobs in Pittsford, New York,[33] and more than 125 jobs to Scranton, PA.[34]

The company offers services in the health insurance exchange marketplace and in July 2012, the Minnesota Department of Commerce awarded MAXIMUS a two-year, $41 million contract to create the state's new health insurance exchange.[35] In February 2013, Connecticut awarded MAXIMUS a $15 million contract to run the customer contact center operations for the state’s health insurance exchange, Access Health CT.[36]

The health services business is led by Bruce Caswell, who was selected by ExecutiveBiz magazine to its 2010 list of Health IT Experts to Watch.[37]

Awards and recognitions

MAXIMUS CEO Richard Montoni was named the 2012 Washington, D.C. GovCon Executive of the Year Award among companies with annual revenue greater than $300 million.[38] In addition, MAXIMUS was one of five companies with annual revenue greater than $300 million that were selected as finalists for the 2012 Washington, D.C. GovCon Contractor of the Year Award.[39]

In 2013, MAXIMUS CFO David Walker was nominated for Public Company Chief Financial Officer of the Year by the Northern Virginia Technology Council.[40]

Gartner selected MAXIMUS as the overall winner of the 2011 Business Process Management (BPM) Program of the Year. MAXIMUS was also awarded top honors for the "Most Innovative Use" of BPM.[41][42]

Several MAXIMUS customer contact centers were recognized by BenchmarkPortal.[43] BenchmarkPortal has recognized the MAXIMUS Mass Health and Georgia Families Customer Contact Service Operations Centers, the California Health Care Options Call center,[44] the New York Medicaid Choice call center,[45] and the Texas Eligibility Support Services Customer contact Center.[46]

DeltaWare, a subsidiary of MAXIMUS, has been ranked one of the Top Places to Work for three consecutive years (2012, 2011 and 2010) by Atlantic Canada's Top Employers Competition.[47]

Community service and charitable contributions

Corporate sponsorships

MAXIMUS provides financial support for a variety of initiatives, including the National Hispanic Health Foundation (NHHF) scholarship program targeted to leadership and service to underserved populations[48] and the Urban League of Middle Tennessee.[49]

In 2010, MAXIMUS joined other Northern Virginia technology companies to provide pro bono work to help digitize mislabeled and unaccounted-for graves and upgrade a paper record-keeping system at Arlington National Cemetery, an effort that U.S. Senator Mark Warner called "corporate citizenship at its best."[50]

In 2011, MAXIMUS helped fund No Kid Hungry Texas,[51] a joint initiative of Share our Strength and the Texas Hungar Initiative to reduce childhood hunger through existing nutrition plans.[52] That same year, MAXIMUS Australia (MAX Employment) held the Great Australian Christmas Jobs Drive campaign, which exceeded its target of getting 10,000 unemployed people into work by Christmas Day. As part of the campaign, MAX Employment donated $100,000 to The Smith Family Christmas Appeal.[53]

In 2012, MAXIMUS Canada hosted the UrbaCity Challenge,[54] an amazing race-style event in Victoria, British Columbia that raised $15,000 for the Prostate Centre, a non-profit organization dedicated to providing unbiased information on prostate cancer to men and their families.[55]

The MAXIMUS Foundation

The MAXIMUS Foundation is a non-profit,501(c)(3) charitable organization incorporated in the Commonwealth of Virginia that funds programs that help disadvantaged individuals achieve self-sufficiency and personal growth, particularly those programs serving kids.[56] Funded by charitable gifts from the employees of MAXIMUS and supplemented by grants from the company, the MAXIMUS Foundation.[57] As Chairman of the Foundation, Dr. John Boyer received a the Medical Leadership award from the National Hispanic Medical Associations.[58]

The MAXIMUS Foundation awards grants annually. In 2009, the Maternity and Early Childhood Foundation used grant support from the MAXIMUS Foundation to upgrade aging computer equipment and build its capacity to promote quality services and provide required reports to New York State.[59] In 2011, EMQ FamiliesFirst, a California-based non-profit agency that helps children in crisis and their families received a grant from the MAXIMUS Foundation.[60] In 2012, the South Bronx Overall Economic Development Corporation (SoBRO) used grant money from the MAXIMUS Foundation to start the Greenhouse Roof Operation (GRO), a program to teach disadvantaged youth vocational skills through the construction and operation of a hydroponic farm.[61] That same year, the MAXIMUS Foundation awarded a $2,000 grant to United Neighborhood Centers in Scranton, Pennsylvania,[62] as well as over $100,000 in grants, which included funding for Washington D.C non-profit organizations, such as the Alexander Graham Bell Association for the Deaf and Hard of Hearing, DEA Educational Foundation, Dreams for Kids, the Fishing School and Mary’s Center for Maternal and Childcare, KEEN Greater DC, Primary Care Coalition of Montgomery County, A Wider Circle the Children’s AIDS Fund, Herndon-Reston FISH, ROSMY, Safe Harbor and WETA-TV.[63]

Criticisms

November 1997- The Hartford Courant reported that MAXIMUS "gets minimal results" when it was hired by the State of Connecticut to manage a child care program for recipients of welfare.[64] According to the Record-Journal, MAXIMUS "hired too few people, installed an inadequate phone system and fell weeks or months behind in making payments to day care providers."[65] The Connecticut Department of Social Services (DSS) asked MAXIMUS to meet improvement goals and by December, DSS Commissioner Joyce A. Thomas noted improvements on several fronts commenting, “The good news for Connecticut’s child care providers and the families we all serve is that the situation is rapidly improving. MAXIMUS has come a long way, and we are confident that current efforts are paving the way to long-term improvements.”[66]

December 1998- The Sarasota Herald Tribune reported that the State of Florida had paid MAXIMUS $4.5 Million for a Child Support Recovery contract. MAXIMUS was only able to collect $162,000. "On average taxpayers paid MAXIMUS $25 for every 3 cents collected".[67]

April 2000- A New York judge ruled that MAXIMUS "misled" the city's Human Resources Administration about the role a former senior policy adviser to Mayor Rudolph W. Giuliani played in the company's proposal for a welfare contract.[68] Six months later, in October 2000, the Appellate Division of New York State Supreme Court, unanimously overturned the lower court's ruling, stating, "There was no evidence of favoritism...There was no evidence that Maximus was afforded unfair access."[69]

October 2000- Six state lawmakers in Wisconsin called for the termination of MAXIMUS' W-2 contract, saying the firm has "broken faith with the state and poor people the agency serves in Milwaukee County."[70]

June 2001- The Milwaukee Journal Sentinel reported that two MAXIMUS employees filed discrimination complaints against the company. The employees stated that MAXIMUS is so lacking in diversity that the companies minority employees referred to it as "White Castle".[71]

July 2007- MAXIMUS settled a lawsuit brought against it by the United States government for involvement in falsifying Medicaid claims for $30.5 million.[72]

October 2010- The Los Angeles Times reported that 146 medical workers, including doctors, nurses and pharmacists were allowed to keep working despite failing drug tests. MAXIMUS was awarded a $2.5 Million a year contract to run California's confidential "diversion programs". MAXIMUS contracted the work out to a subcontractor who in turn subcontracted the work to another company. The drug testing company was using the wrong standard of drug test from December 2009 to August 2010, resulting in medical workers who tested positive for drugs to continue working.[73]

June 2011- Boston-based Fox25 news uncovered that a wanted fugitive by the name of Maureen Simonetti was working for MAXIMUS as a manager on the MassHealth project and had access to the personal information of individuals who use MassHealth for their healthcare. Simonetti's attorney said his client disclosed pleading no contest to grand theft on her application to work at Maximus in 2005. However, the required Massachusetts background check, known as a CORI, did not uncover Simonetti's grand theft case in Florida, which is an out of state criminal record. MAXIMUS stated that it had "no reason to believe that anyone's personal information was used inappropriately" and terminated Simonetti.[74]

September 2011- MAXIMUS INC. was sued by U.S. Equal Employment Opportunity Commission (EEOC) for disability discrimination for failure to promote a female employee because it regarded her as disabled.[75] MAXIMUS settled the lawsuit in August 2012.[76]

June 2012- Through an internal privacy audit, MAXIMUS discovered that a worker in Canada illegally viewed personal health records of 43 Canadians. The worker involved was immediately suspended and later fired. Health critic and member of the New Democratic Party Mike Farnworth said the incident was disturbing. "It's concerning, we've had concerns about Maximus in the past," he said. "I think what I would like to know - is this an isolated incident? Has it happened in the past?" Ryan Jabs, spokesman for the British Columbia Health Ministry said,"The risk is really low level because it looks like he or she was accessing the information out of curiosity but not for any fraudulent activity."[77]

January 2013- A MAXIMUS employee, Marilyn Beltran, based in Boston MA was indicted for allegedly stealing more than $490,000 from the Massachusetts Medicaid program. The theft had occurred over a period of nine years.[78]

Financial performance

Fiscal Year Total Revenue (Millions)
2011 $929.6
2010 $831.7
2009 $720.1
2008 $699.5
2007 $584.5
2006 $700.8
2005 $647.5
2004 $603.7

Notes

  1. ^ [1]
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  3. ^ http://www.twst.com/interview/212
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  5. ^ http://www.consumersunion.org/health/medical1.htm
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  7. ^ Babcock, Charles R. (2006-04-25). "Maximus CEO Fired Over Conduct Toward Worker". The Washington Post. 
  8. ^ "Most Names Won't Ring a Bell". Bloomberg. 2013-10-17. 
  9. ^ "Maximus to explore strategic alternatives including sale". Reuters. 2007-07-23. 
  10. ^ "Maximus is not for sale". 
  11. ^ "Maximus Acquires Deltaware". Tech Journal. 15 February 2010. 
  12. ^ Pankratz, Howard (13 April 2012). "Denver-based PSI to be acquired for $67 million dollars cash". Denver Post. 
  13. ^ "US-based Maximus acquires Health Management". HealthInvestor. 12 July 2013. 
  14. ^ http://phx.corporate-ir.net/phoenix.zhtml?c=88279&p=irol-newsArticle&t=Regular&id=1252418&
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  16. ^ "MAXIMUS to Sell Justice, Asset Solutions, and Education Systems". Streetinsider.com. 2008-09-23. Retrieved 2012-04-02. 
  17. ^ http://www.businessweek.com/ap/financialnews/D9I929CG0.htm
  18. ^ http://www.drnpa.org/File/publications/pabss-ticket-to-work-program.pdf
  19. ^ http://www.thestreet.com/story/11256101/1/maximus-designated-top-provider-under-final-results-from-uk8217s-flexible-new-deal.html
  20. ^ http://www.dwp.gov.uk/policy/welfare-reform/the-work-programme/
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  22. ^ http://thehiringsite.careerbuilder.com/2012/04/19/how-maximus-empowers-employment-to-build-a-stronger-economy/
  23. ^ http://blog.executivebiz.com/2012/11/maximus-to-help-run-australia-disability-employment-support-program-richard-montoni-comments/
  24. ^ http://www.commercialappeal.com/news/2009/feb/12/juvenile-court-loses-bid-keep-child-support-collec/
  25. ^ http://www.commercialappeal.com/news/2012/jul/22/child-support-services-helps-parents-get-back-on/
  26. ^ Reuters http://www.reuters.com/finance/stocks/companyOfficers?symbol=MMS |url= missing title (help). 
  27. ^ http://blog.executivebiz.com/2010/03/healthcare-it-game-changers-to-watch-maximus-bruce-caswell/
  28. ^ http://www.govconexecutive.com/2011/10/maximus-joins-advisory-council-for-enroll-america-ceo-richard-montoni-comments/
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  30. ^ http://www.crainsnewyork.com/article/20120418/PULSE/120419889
  31. ^ "Republicans: Quinn too slow booting Medicaid cheats". Chicago Tribune. 2012-09-17. 
  32. ^ http://blog.executivebiz.com/2012/10/maximus-to-run-crm-system-for-oklahoma-health-programs-richard-montoni-comments/
  33. ^ http://finance.yahoo.com/news/maximus-brings-325-jobs-pittsford-140000814.html
  34. ^ http://thetimes-tribune.com/news/dozens-of-jobs-coming-to-moosic-1.1299538
  35. ^ http://www.startribune.com/business/162624156.html
  36. ^ http://www.hartfordbusiness.com/apps/pbcs.dll/article?AID=/20130225/NEWS01/130229893
  37. ^ http://blog.executivebiz.com/2010/03/healthcare-it-game-changers-to-watch-maximus-bruce-caswell/
  38. ^ http://washingtontechnology.com/articles/2012/11/01/2012-govcon-award-winners.aspx
  39. ^ http://washingtontechnology.com/articles/2012/09/06/govcon-finalists.aspx
  40. ^ http://www.nvtc.org/events/geteventinfo.php?event=CFOAWD10
  41. ^ http://www.gartner.com/it/page.jsp?id=1588516
  42. ^ http://www.tmcnet.com/scripts/print-page.aspx?PagePrint=http%3a%2f%2ffinancial.tmcnet.com%2ftopics%2fcorporate-performance-management%2farticles%2f157834-maximus-recognized-business-performance-management-gartner.htm
  43. ^ https://www.benchmarkportal.com/call-center-certification/certified-call-centers-excellence
  44. ^ http://www.prweb.com/releases/call-center-certification/center-of-excellence/prweb9521379.htm
  45. ^ http://www.benchmarkportal.com/2010/01/27/maximus-recognized-for-outstanding-call-center-operations
  46. ^ http://www.prlog.org/10730599-maximus-earns-prestigious-center-of-excellence-recognition-from-benchmarkportal.html
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  49. ^ http://www.ulmt.org/sponsors.html
  50. ^ "NoVa tech companies offer help to Arlington National Cemetery". 
  51. ^ http://tx.nokidhungry.org/about-us
  52. ^ http://www.statesman.com/news/education/new-initiative-tackles-child-hunger-in-texas-1908172.html
  53. ^ http://www.finchannel.com/Main_News/Jobs/100398_Giving_the_gift_of_10_000_jobs_this_Christmas/
  54. ^ http://urbacitychallenge.com/
  55. ^ http://www.timescolonist.com/touch/health/story.html?id=6760897
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  57. ^ http://www.healthevillages.org/advisory-board/john-boyer/
  58. ^ http://www.healthevillages.org/advisory-board/john-boyer/
  59. ^ http://www.mecfny.org/whatsnew/whatsnew.aspx?action=details&newsid=8&archive=1
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  61. ^ http://www.sobro.org/news-events/news/2012/02/13/sobro-awarded-con-edison-and-maximus-foundation-grants
  62. ^ http://thetimes-tribune.com/news/regional-briefs-12-3-2012-1.1411160
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  69. ^ Lipton, Eric (2000-10-25). "Rejecting Favoritism Claim, Court Upholds a City Welfare Contract". New York Times. Retrieved 2012-08-27. 
  70. ^ Schultze, Steve (2000-10-27). "JSOnline.com News Archives". Nl.newsbank.com. Retrieved 2012-04-02. 
  71. ^ http://news.google.com/newspapers?id=GDYqAAAAIBAJ&sjid=rzsEAAAAIBAJ&pg=1846,1629565&dq=maximus+inc&hl=en
  72. ^ Lazo, Alejandro (2007-07-24). "Maximus Settles Fraud Case for $30.5 Million". washingtonpost.com. Retrieved 2012-04-02. 
  73. ^ Garrison, Jessica (2010-10-08). "Maximus | Medical workers were allowed to keep practicing despite failing drug, alcohol tests - Los Angeles Times". Articles.latimes.com. Retrieved 2012-04-02. 
  74. ^ http://www.capemedianews.org/index.php?option=com_content&view=article&id=1269:wanted-fugitive-working-for-state-contractor&catid=59:national}
  75. ^ "Maximus, Inc. Sued by EEOC for Disability Discrimination". Eeoc.gov. Retrieved 2012-04-02. 
  76. ^ http://thejobmouse.com/2012/08/15/maximus-will-pay-50000-for-refusing-to-promote-woman-because-of-her-previous-stroke/
  77. ^ http://www.timescolonist.com/health/privacy+breach+Maximus+worker+fired/6719766/story.html
  78. ^ http://www.bostonglobe.com/metro/2013/01/12/lynn-man-and-woman-charged-with-bilking-masshealth-more-than-transport-scam/9kg9Q4wtUs06pvZGcee5yO/story.html

External links