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Magellan Reports Lower 1st Quarter Net Income

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NU Online News Service, May 14, 10:15 a.m. – Magellan Health Services Inc., Columbia, Md., is reporting $6.4 million in net income for the first quarter on $438 million in revenue, compared with $11 million in net income on $444 million in revenue for the first quarter of 2001.

The latest net results include $3.4 million in restructuring charges.

Magellan provides or administers mental health coverage and substance abuse treatment coverage for 69 million U.S. residents, or one-quarter of the U.S. population.

The company says insured enrollment dropped during the quarter because of shrinkage in enrollment at a major client, Aetna Inc., Hartford.

The underlying cost of care increased about 8%, the company says.