Financial Performance will not turn on DIME this year, she said. This is because the cycle of profit and failure for nonprofits can usually be played over several years. However, Dusil said Medica officials are confident in their new multi-year strategy.
“We’re not maximizing shareholder revenue,” she said. “The goal is simple: have a sustainable business model to provide care to our members. We have a long-term plan to promote sustainability, better outcomes and simpler experiences for our members and partners.”
The Minnesota Star Tribune uses the term “profit” to describe the revenues of the state’s largest nonprofit organizations and to earn money reinvested into operations, reflecting the key capabilities of these large organizations. For-profit companies generally allow outside investors to take advantage of at least some of the revenue.
Medica offers coverage to approximately 760,000 people spread across the individual health insurance market, fully insured employer groups, and health plans for those eligible for coverage from Medicare or Medicaid government programs.
Additionally, the company serves approximately 610,000 third-party administrators in its “self-insured” health plan, employers employ the financial risks of claim costs, and employers like Medica handle the operations.
For the past decade, Medica’s strategy has focused on expanding outside of Minnesota. Pre-business more than 40 years ago.
