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Maximus Inc.
Company typePublic
NYSEMMS
S&P 400 component
IndustryHealthcare, business services
Government contractor
Founded1975
HeadquartersReston, Virginia
Key people
RevenueIncrease US$2.88 billion (FY2019)[1]: 19 
Number of employees
29,600 (2019)[1]: 14 
Websitemaximus.com

Maximus Inc. is an American company that provides business process services to government agencies, including health and human services agencies, in the United States, Australia, Canada, Italy, Saudi Arabia, Singapore, South Korea, Sweden, and the United Kingdom. Maximus focuses on administering government-sponsored programs, such as Medicaid, the Children's Health Insurance Program (CHIP), health care reform, welfare-to-work, Medicare, child support enforcement, and other government programs. The company is based in Reston, Virginia, has more than 29,600 employees and a reported annual revenue of $2.88 billion in fiscal year 2019.[1]: 14, 19 

History

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Maximus was founded in 1975 by David V. Mastran, a Vietnam veteran and former employee of the U.S. Department of Health, Education, and Welfare.[2][3] Maximus initially operated as a consulting firm for the federal government and later became the first company to provide business process services for welfare reform, according to The Washington Post.[4] It also offered information technology services.[4] In 1987 Maximus won its first contract for social welfare, in Los Angeles, and transitioned its business focus to operating government programs and services.

In 1997, the company went public, trading on the New York Stock Exchange under the symbol MMS. Mastran retired in 2004 and Lynn Davenport became chief executive officer.[5] 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 company's performance[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] Maximus sold its divisions for Security Solutions,[11] Justice Solutions, Education Systems, Asset Solutions,[12] and Enterprise Resource Planning.[13] Beginning in 2010, the company started adding new capabilities through a series of acquisitions, including DeltaWare, a developer of health administration management systems for the Canadian government health care market,[14] Policy Studies Incorporated (PSI),[15] and Maximus acquired UK-based Health Management Ltd.(HML).[16]

Maximus won a £500m government contract to decide whether disabled people are able to return to work after Atos abandoned their contract to perform assessments in 2014. Professor Michael O'Donnell, the former medical director of Atos now works as the medical director of Health Management Limited which is a subsidiary of Maximus. It was alleged that the removal of all reference to his previous role at Atos from his career history on the business networking site LinkedIn in November 2014 was an effort to conceal the close relationship between the two organisations.[17]

On April 6, 2015, the company completed the $300 million acquisition of Falls-Church-based technology contractor, Acentia.[18] The deal significantly adds to the company's federal business by bringing on new customers and new contract vehicles.

In 2018, after twelve successful years as CEO, Richard Montoni announced his retirement and the company appointed President Bruce Caswell to the position of chief executive officer.[19] Caswell took over the reigns with a vision to embark the company on a digital transformation and clinical evolution in order to help governments transform the way they engage with citizens through public programs.[20][21]

Maximus acquired General Dynamics IT's call center business for $400 million in 2018.[22][23] The acquisition added approximately $800 million in revenue from federal business, including a $430 million Census Bureau contract and one worth $263.5 million with the Federal Emergency Management Agency, and a new cloud-based, FedRAMP-certified telephony system.[22] Following this acquisition, federal business accounted for one-third of Maximus' revenue; the remainder comes from work done with international, state, and local governments.

Services

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Maximus provides business process services to federal, state, and local government agencies in the U.S., as well as international authorities. Maximus offers services through three business segments: U.S. Health & Human Services (program administration, appeals and assessments work and related consulting work); U.S. Federal Services (program administration, appeals, assessments, and technology services); and Outside the United States (welfare-to-work and disability employment support services).[1]: 5–9 

It is often noted for its work with health and human services agencies. The company 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.[24] Maximus serves on the Enroll America advisory council.[25][26] The company is the largest provider of administrative services for Medicaid and CHIP in the United States, serving more than 50% of the market.[27] Maximus also operates customer call centers.[28]

Maximus operates a variety of human services programs, including welfare-to-work programs in the U.S. (such as the Ticket to Work program) and internationally,[29][30] child support enforcement,[31] child care, child welfare, specialized consulting, and higher education consulting. Maximus also operates Work Capability Assessments and programs to help people with disabilities find employment.[32][33]

With the 2018 acquisition of General Dynamics Information Technology, Maximus expanded its customer call center services for federal civilian programs, such as the Census Bureau and the Federal Emergency Management Agency.[22][34]

Awards and recognitions

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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.[35]

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.[36][37]

Several Maximus customer contact centers were recognized by BenchmarkPortal.[38] BenchmarkPortal has recognized the Maximus Mass Health and Georgia Families Customer Contact Service Operations Centers, the California Health Care Options Call Center,[39] the New York Medicaid Choice Call Center,[40] and the Texas Eligibility Support Services Customer Contact Center.[41]

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.[42]

In 2015, Maximus was recognized as one of the Top Companies to work for in the Washington, D.C. area by The Washington Post.[43]

Fortune included Maximus on the 2017 Most Admired Companies List.[44][45]

In 2019, Washington Technology ranked Maximus No. 25 on its list of top 100 government contractors.[46]

Community service and charitable contributions

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Maximus's corporate sponsorships have included the 2010 effort alongside other Northern Virginia technology companies to help digitize mislabeled and unaccounted-for graves and upgrade a paper record-keeping system at Arlington National Cemetery[47] and the "No Kid Hungry Texas" initiative in 2011.[48]

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.[49] Its contributions go to organizations addressing homelessness, job loss, child abuse, and health.[50] It has also contributed to funds for victims of natural disasters and tragedies.[51][52] Maximus Foundation is funded by charitable gifts from employees of Maximus and supplemented by grants from the company.[53] The foundation's chairman, Dr. John Boyer, received a Medical Leadership award from the National Hispanic Medical Associations,[53] and the 2013 Ripple of Hope Award.[54]

Criticisms

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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.[55] 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."[56] 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."[57]

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."[58]

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.[59] 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."[60]

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."[61]

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/"[62]

July 2007- Maximus settled a lawsuit brought against it by the United States government for involvement in falsifying Medicaid claims for $30.5 million.[63]

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.[64]

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.[65]

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.[66] Maximus settled the lawsuit in August 2012.[67]

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."[68]

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.[69]

2016 the New York City Public Advocate Letitia James sued the city's Department of Education over a system built by Maximus. The system, called SESIS, was meant to help the city track services for students with disabilities, but was prone to malfunctions and did not fully answer its original defined functional scope. The system had cost the city ~$130 million to build, but also incurred at least ~$356 million more in lost Medicaid reimbursements.[70][71][72]

February 2020- Oxygen reported that Netflix's new show highlights the shortcoming of Maximus's failures in the death of Gabriel Fernandez, the 8 year old boy beaten & tortured to death by his mother and her boyfriend.[73]

Financial performance

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Fiscal year Total revenue (millions)
2019 $2,886.8[1]: 19 
2018 $2,392.2[74]: 19 
2017 $2,450.9[75]: 18 
2016 $2,403.3[76]: 19 
2015 $2,099.8[77]: 21 
2014 $1,700.9
2013 $1,331.2
2012 $1,050.1
2011 $929.6
2010 $831.7
2009 $720.1
2008 $699.5
2007 $584.5
2006 $700.8
2005 $647.5
2004 $603.7

See also

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American Legislative Exchange Council

References

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  1. ^ a b c d e "2019 Form 10-K" (PDF). Maximus.
  2. ^ Andrejczak, Matt (June 16, 1997). "Welfare reform spurs Maximus IPO". Washington Business Journal. Retrieved June 23, 2020.
  3. ^ "Service Master". Forbes. April 1, 2001. Retrieved June 23, 2020.
  4. ^ a b "The Washington Post's 200 Companies". The Washington Post. April 26, 1999. Retrieved June 24, 2020.
  5. ^ "2005 Post 200". The Washington Post. 2005. Retrieved June 23, 2020.
  6. ^ "Maximus Inc. fires CEO".
  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 reports profits, closes deal to sell division to Cogent".
  12. ^ "Maximus to Sell Justice, Asset Solutions, and Education Systems". Streetinsider.com. 2008-09-23. Retrieved 2012-04-02.
  13. ^ "Archived copy". Archived from the original on 2015-09-23. Retrieved 2012-08-27.{{cite web}}: CS1 maint: archived copy as title (link)
  14. ^ "Maximus Acquires Deltaware". Tech Journal. 15 February 2010.
  15. ^ Pankratz, Howard (13 April 2012). "Denver-based PSI to be acquired for $67 million dollars cash". Denver Post.
  16. ^ "US-based Maximus acquires Health Management". HealthInvestor. 12 July 2013.
  17. ^ "Senior Atos executive finds new role at the American company taking over disability benefit". Independent. 31 October 2014. Retrieved 9 November 2014.
  18. ^ "Maximus completes $300M Acentia acquisition - Washington Business Journal". Washington Business Journal. Retrieved 2015-07-16.
  19. ^ "Bruce Caswell to Succeed Richard Montoni as Maximus CEO - GovCon Wire". GovCon Wire. Retrieved 2018-05-16.
  20. ^ Transcripts, S. A. (2018-08-13). "MAXIMUS, Inc. (MMS) CEO Bruce Caswell on Q3 2018 Results - Earnings Call Transcript". Seeking Alpha. Retrieved 2018-11-27.
  21. ^ Ziadeh, Amanda (July 15, 2019). "Bruce Caswell Fulfills 'Last-Mile Connection' to Consumers at MAXIMUS". WashingtonExec. Retrieved June 29, 2020. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  22. ^ a b c Wakeman, Nate (July 2, 2019). "TOP 100: Acquisition puts Maximus on transformation path". Washington Technology. Retrieved June 23, 2020.
  23. ^ "MAXIMUS to Buy GDIT's Citizen Engagement Centers | WashingtonExec". WashingtonExec. 2018-10-14. Retrieved 2018-11-27.
  24. ^ Admin (9 March 2010). "Healthcare IT Game Changers to Watch: MAXIMUS' Bruce Caswell".
  25. ^ Mehta, Neel (19 October 2011). "Maximus Joins Advisory Council for Enroll America; CEO Richard Montoni Comments".
  26. ^ Kliff, Sarah (2011-12-21). "Are you smarter than a 5th grader? Health insurance edition". The Washington Post.
  27. ^ "Young patients have healthy interest in social media". Crain's New York Business. 18 April 2012.
  28. ^ "Va. firm to run CT health exchange call center for $15M | Hartford Business Journal". Hartfordbusiness.com. 2013-02-25. Retrieved 2019-06-15.
  29. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2012-09-05. Retrieved 2012-07-30.{{cite web}}: CS1 maint: archived copy as title (link)
  30. ^ "Maximus Notified of Award on United Kingdom Work Programme". Reuters. 2011-04-01.
  31. ^ Pankratz, Howard (April 13, 2012). "Denver-based PSI to be acquired for $67 million in cash". Denver Post. Retrieved June 25, 2020.
  32. ^ "DWP extends Maximus fit-for-work tests contract as huge benefits change revealed". Daily Record. 5 March 2019. Retrieved 5 March 2019.
  33. ^ Wilkers, Ross (2 November 2012). "Maximus to Help Run Australia Disability Employment Support Program; Richard Montoni Comments".
  34. ^ Terry, Robert J. (October 9, 2018). "Maximus inks deal to acquire GDIT's call center business". Washington Business Journal. Retrieved June 29, 2020.
  35. ^ Wakeman, By Nick; Sep 06, 2012. "CACI's London leads group of 2012's top contractors -". Washington Technology. {{cite web}}: |first2= has numeric name (help)CS1 maint: numeric names: authors list (link)
  36. ^ "Archived copy". Archived from the original on 2012-08-12. Retrieved 2012-09-10.{{cite web}}: CS1 maint: archived copy as title (link)
  37. ^ "Archived copy". Archived from the original on 2018-02-17. Retrieved 2012-09-10.{{cite web}}: CS1 maint: archived copy as title (link)
  38. ^ "Archived copy". Archived from the original on 2012-08-20. Retrieved 2012-09-11.{{cite web}}: CS1 maint: archived copy as title (link)
  39. ^ "BenchmarkPortal Announces: MAXIMUS Call Centers Achieve Certification as Centers of Excellence". PRWeb.
  40. ^ "Contact Center Press Releases". BenchmarkPortal.
  41. ^ BenchmarkPortal. "Maximus Earns Prestigious Center of Excellence Recognition from BenchmarkPortal". PRLog.
  42. ^ "Archived copy". Archived from the original on 2013-01-01. Retrieved 2012-09-11.{{cite web}}: CS1 maint: archived copy as title (link)
  43. ^ "Top Workplaces 2015". Washington Post. Retrieved 2015-06-22.
  44. ^ "World's Most Admired Companies: Maximus". Fortune. 2017. Retrieved June 24, 2020.
  45. ^ "MAXIMUS Included on Fortune's Annual World's Most Admired Companies List | MAXIMUS Online Investor Center". investor.maximus.com. Retrieved 2018-11-27.
  46. ^ "2019 Top 100". Washington Technology. 2019. Retrieved June 24, 2020.
  47. ^ "NoVa tech companies offer help to Arlington National Cemetery".
  48. ^ "Archived copy". Archived from the original on 2012-09-23. Retrieved 2012-08-27.{{cite web}}: CS1 maint: archived copy as title (link)
  49. ^ "The Maximus Charitable Foundation makes Maximum Impact". Juvenile Justice Information Exchange. 12 August 2011.
  50. ^ Mehta, Neel (June 4, 2012). "Maximus Foundation Donates $100K To DC Area Nonprofits; John Boyer Comments". ExecutiveBiz. Retrieved June 24, 2020.
  51. ^ "Nepal Earthquake". Center for Disaster Philanthropy. August 25, 2015. Retrieved June 24, 2020.
  52. ^ "Richard Montoni: Maximus Donation to Help Fund SC Youth, Health Programs". Retrieved 2015-08-04.
  53. ^ a b "John Boyer".
  54. ^ Urban, Cate. "2013 Ripple of Hope Gala Honored Muhammad Yunus, Niclas Matseke, and John Boyer | Robert F. Kennedy Center for Justice & Human Rights | Robert F. Kennedy Center for Justice & Human Rights". rfkcenter.org. Retrieved 2015-07-31.
  55. ^ "Maximus Gets Minimal Results - Hartford Courant". Articles.courant.com. 1997-11-11. Retrieved 2012-04-02.
  56. ^ "Record-Journal - Google News Archive Search". news.google.com.
  57. ^ "Connecticut Department of Social Services Press Release". dt.gov. 1997-12-16.
  58. ^ "Sarasota Herald-Tribune - Google News Archive Search". news.google.com.
  59. ^ Hilzenrath, David S. (2000-04-22). "N.Y. Judge Shelves Welfare Contracts Won by Maximus; Procurement Process Ruled 'Corrupted'; McLean Firm Denies Any Impropriety". Pqasb.pqarchiver.com. Archived from the original on March 7, 2016. Retrieved 2012-04-02.
  60. ^ Lipton, Eric (2000-10-25). "Rejecting Favoritism Claim, Court Upholds a City Welfare Contract". New York Times. Retrieved 2012-08-27.
  61. ^ Schultze, Steve (2000-10-27). "JSOnline.com News Archives". Nl.newsbank.com. Retrieved 2012-04-02.
  62. ^ "Milwaukee Journal Sentinel - Google News Archive Search". news.google.com.
  63. ^ Lazo, Alejandro (2007-07-24). "Maximus Settles Fraud Case for $30.5 Million". washingtonpost.com. Retrieved 2012-04-02.
  64. ^ 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.
  65. ^ [1]
  66. ^ "Maximus, Inc. Sued by EEOC for Disability Discrimination". Eeoc.gov. Retrieved 2012-04-02.
  67. ^ "Archived copy". Archived from the original on 2012-08-17. Retrieved 2012-08-16.{{cite web}}: CS1 maint: archived copy as title (link)
  68. ^ Shaw, Rob (2 June 2012). "43 hit by privacy breach, Maximus worker fired". Times Colonist. Archived from the original on 15 June 2012. Retrieved 18 January 2019.
  69. ^ Comments, Email to a Friend Share on Facebook Share on TwitterPrint this Article View. "Two allegedly stole about $490,000 in health scheme - The Boston Globe". BostonGlobe.com. {{cite web}}: |first= has generic name (help)
  70. ^ Harris, Elizabeth (2 February 2016). "Letitia James, New York Public Advocate, Sues Education Dept. Over Schools' Disability Services". The New York Times. Retrieved 5 February 2016.
  71. ^ "PA James Suit: DOE Failure Equals Lack of Services for Students with Disabilities, Loss of Funding for City". Public Advocate for the City of New York. Archived from the original on February 6, 2016. Retrieved 5 February 2016.
  72. ^ "Affidavit of Petitioner Letitia James in Support of Her Application for a Summary Judicial Inquiry Pursuant to New York City Charter Secions 1109" (PDF). Public Advocate for the City of New York. p. 5. Archived from the original (PDF) on December 28, 2016. Retrieved 5 February 2016. The contract was awarded to Maximus Inc., a Virginia based company.
  73. ^ Sederstrom, Jill (February 28, 2020). "Did The For-Profit Company Maximus And The 'Poverty Industrial Complex' Fail Gabriel Hernandez?". Oxygen (TV network). Retrieved June 24, 2020.
  74. ^ "2018 Form 10-K" (PDF). Maximus.
  75. ^ "2017 Form 10-K" (PDF). Maximus.
  76. ^ "2016 Form 10-K" (PDF). Maximus.
  77. ^ "2015 Form 10-K" (PDF). Maximus.
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Category:Business services companies of the United States Category:Medicare and Medicaid (United States) Category:Companies based in Reston, Virginia Category:Business services companies established in 1975 Category:Companies listed on the New York Stock Exchange Category:Medical and health organizations based in Virginia Category:1975 establishments in Virginia