NU Online News Service, April 29, 2004, 6:09 p.m. EDT – Reorganization expenses and other unusual expenses caused Magellan Health Services Inc., Farmington, Conn., to post a loss for the first quarter.[@@]
Magellan, a company that manages mental health care benefits for about one-quarter of all U.S. residents, is reporting a $12.4 million net loss for the quarter on $409 million in revenue, compared with $12.9 million in net income on $440.2 million in revenue for the first quarter of 2003.
Magellan sought bankruptcy court protection in March 2003 to restructure debt accumulated during the 1990s. The company emerged from Chapter 11 reorganization proceedings in January.
The company notes that its first-quarter earnings include $23.2 million in net reorganization expenses.