Maximus Inc. facts for kids
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| Public | |
| Traded as | NYSE: MMS S&P 400 component |
| Industry | Healthcare, business services Government contractor |
| Founded | 1975 |
| Headquarters | Tysons, Virginia |
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Areas served
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Australia, Canada, Saudi Arabia, South Korea, United Arab Emirates, United Kingdom, United States |
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Key people
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| Revenue |  $4.9 billion (2023) |
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Number of employees
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39,600 (2023) |
Maximus Inc. is an American government services company, with global operations in countries including the United States, Australia, Canada, and the United Kingdom. The company contracts with government agencies to provide services to manage and administer government-sponsored programs. Maximus provides administration and other services for Medicaid, Medicare, health care reform, welfare-to-work, and student loan servicing among other government programs. The company is based in Tysons, Virginia, has 39,600 employees and a reported annual revenue of $4.9 billion in fiscal year 2023.
Contents
History
Maximus was founded in 1975 by David V. Mastran, initially operating as a consulting firm for the federal government, including information technology services.
The history of Maximus follows the trajectory of significant government policy changes.
The government service reform policies in the 80’s and early 90’s of the Reagan administration and continued in the Bush and Clinton administrations, led to governments increased private-sector contracting for administration program functions operated under the control of government. In 1988, Maximus was awarded its first contract for social welfare from Los Angeles County, and began shifting focus towards business process outsourcing and providing state-based consulting services.
Passage of the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 under President Clinton granting states greater latitude in administering social welfare programs, and the Balanced Budget Amendment of 1997 amending certain eligibility, enrollment, and beneficiary protections in Medicaid further increased government use of public / private partnerships for the administration of certain program functions.
In 1997, the company went public, trading on the New York Stock Exchange under the symbol MMS.
The G.W. Bush Administration saw reauthorization and expansion of PRWORA, cementing the government’s use of private sector contracting of administrative functions associated with Federally funded, state administered, entitlement programs.
In 2006,Richard Montoni, former chief financial officer for Maximus, was named CEO. From 2008 to 2010, Maximus engaged in a number of divestitures that included its Security Solutions, Justice Solutions, Education Systems, Asset Solutions and Enterprise resource planning (ERP) divisions, focusing the firm on providing health and human services core program solutions.
Passage in 2010 of the Patient Protection and Affordable Care Act (ACA) during the Obama Administration further expanded the use of private sector contracting of government administrative functions associated with the ACA, Medicaid, and Medicare, in conjunction with other human services related programs.
From 2010 to 2013, Maximus acquired Denver-based Policy Studies Incorporated (PSI) to increase its capacity to serve government clients in the US and expanded into clinical assessment services with the acquisition of Ascend. From a global perspective, Maximus acquired UK based Health Management Ltd. On April 6, 2015, the company completed the $300 million acquisition of Falls-Church-based technology contractor, Acentia, expanding the Maximus federal technology business.
In 2018, after twelve years as CEO, Richard Montoni announced his retirement and the company appointed President Bruce Caswell to the position of chief executive officer. Caswell articulated a strategic plan focusing the company’s activities on helping governments advance digitally-enabled customer service, modernizing technology capabilities and expansion of clinical services delivery. In November 2018, Maximus acquired U.S. Federal citizen engagement center assets from another government contractor (GDIT) for $400 million in cash. Maximus hired Dr. Arvenita Washington Cherry as Senior Director of DE&I in 2020 in an effort to bolster diversity and inclusion in its workforce.
In September 2021, Maximus and Navient announced the two companies signed a definitive agreement to transfer the loan servicing for U.S. Department of Education-owned student loan accounts from Navient to Maximus through a contract novation. The Federal Student Aid (FSA) director Richard Cordray approved the agreement in October 2021, which impacted 5.6 million student loan borrowers. Maximus created a new federal loan servicing unit, known as Aidvantage, and said in a statement, “This is a defining moment for student borrowers…it is imperative we get it right.”
In 2021, Maximus acquired Attain and Veterans Evaluation Services (VES) for a combined total of $1.8 billion.
In May 2022, Maximus relocated its headquarters to Tysons, Virginia and new office space that was reported to incorporate "many of the post-pandemic office designs that architects and companies are emphasizing." In 2022 and 2023 Maximus workers were involved in actions to demonstrate against labor conditions and for improved pay, following employee layoffs.
Services
Health services
Maximus provides 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. Maximus serves on the Enroll America advisory council.
The company is the largest provider of administrative services for Medicaid and CHIP in the United States, serving more than 50% of the market. In September 2012, the Illinois Department of Healthcare and Family Services awarded Maximus Health Services a two-year, $76.8 million contract to help the state with its Medicaid program. 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.
Maximus is also the largest provider of privatized health insurance appeals to Medicare. In 2012 it expanded its growing Federal operations, bringing 500 local jobs to upstate New York and Pennsylvania, including more than 325 jobs in Pittsford, NY and more than 125 jobs to Scranton, PA.
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. 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.
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.
Human services
Maximus operates human services programs, including welfare-to-work (such as the Ticket to Work program), child support enforcement, child care, child welfare, specialized consulting, 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 programme, helping job seekers into long-term sustained employment. Following the Flexible New Deal, the United Kingdom government unveiled a replacement program, called the Work Programme, that created welfare reform changes. Maximus serves as a contractor in three regions under the UK's Work Programme initiative. Its subsidiary, Centre for Health and Disability Assessments Ltd., runs Work Capability Assessments with a contract which began in 2014 and runs until July 2021.
In 2012, the company launched its first welfare-to-work program in Canada and expanded its Australia operations with a five-year contract to help people with disabilities find employment.
Maximus also provides 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. 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.
IT Modernization
The Maximus work with government agencies at the state, federal, and international level has evolved into more broad IT modernization work, focused on implementing emerging technologies and helping agencies transition to cloud-based platforms. This includes work with Securities and Exchange Commission (SEC) to modernize a filing and storage system that houses information on companies and work with the Internal Revenue Service (IRS) to improve the agency's technology infrastructure and support content in the cloud.
Student loan servicing
Maximus AidVantage provides servicing for approximately 13 million student loan debtors.
Awards and recognitions
Gartner selected Maximus as the winner of its 2011 Business Process Management (BPM) Program of the Year. The same year, Gartner recognized Maximus for business performance management.
In 2015, Maximus was recognized as one of the Top Companies to work in the Washington, D.C. area by the Washington Post. In 2017, Fortune Magazine named Maximus to its annual World's Most Admired Companies list. Military Times honored Maximus as a Top Employer for veterans in 2020 and Forbes named Maximus to its 2021 list of America's Best Employers for Diversity.
Sponsorships and charity
Corporate giving
In 2010, Maximus and other Northern Virginia companies digitized mislabeled and unaccounted-for graves, on a pro bono basis, and upgraded a paper record-keeping system for Arlington National Cemetery.
In 2011, Maximus helped fund No Kid Hungry Texas, to reduce childhood hunger through existing nutrition plans.
Maximus provided financial support to the National Hispanic Health Foundation (NHHF) scholarship program for health services students and to the Urban League of Middle Tennessee in 2012.
The Maximus Foundation
The Maximus Foundation is a non-profit 501(c)(3) charitable organization incorporated in the Commonwealth of Virginia. Funding is provided by charitable gifts from Maximus employees and supplemented by grants from the company. The foundation contributes to programs helping disadvantaged individuals achieve self-sufficiency, particularly programs serving children. The Chairman of the Foundation is president and General Manager of Maximus Federal Services, John Boyer.
In 2009, the Maternity and Early Childhood Foundation used a grant 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. 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. 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. That same year, the Maximus Foundation awarded over $100,000 in grants for Washington D.C non-profit organizations benefitting children.
In 2015, the Foundation announced that it distributed approximately $390,000 in grants to 121 nonprofit organizations in 22 states. Grantees included CASA of Los Angeles and the Community Health Centers of Burlington.
In 2013, the Maximus Foundation contributed $29,000 to Nepal Earthquake Relief through Project HOPE and in 2015, provided back-to-school supplies to 2,000 low-income children in Austin, Texas, such as socks and a brand-new backpack with school supplies.
The Maximus Foundation helped fund the work of four high school students at Thomas Jefferson High School for Science and Technology in Alexandria, Virginia, to develop Atheia, a new technology to assist those with vision problems.
