NU Online News Service, Aug. 2, 3:02 p.m. – Magellan Health Services Inc., Columbia, Md., is reporting $6.6 million in net income for the second quarter on $433 million in revenue, up from $5 million in net income on $419 million in revenue for the second quarter of 2000.
Operating income from continuing operations, which excludes $4 million in refinancing charges and $3.2 million in income from units that are being sold or shut down, increased to $7.4 million, from $3.7 million.
Magellan manages mental health care and substance abuse treatment for 70 million people — one-quarter of all U.S. residents.
The cost of managing behavioral care for some accounts is up, but rates and cash flow are also higher, Magellan says.
Magellan says was able to refinance a portion of its bank term debt during the quarter by selling $250 million in senior unsecured notes.
Several other managed care companies reported having difficulty selling notes during the second quarter.