NU Online News Service, July 29, 2004, 5:25 p.m. EDT
An increase in mental health care management revenue helped Magellan Health Networks Inc., Farmington, Conn., during the second quarter .[@@]
Magellan manages addiction treatment and other forms of mental health care for about one-quarter of the entire U.S. population. It emerged from Chapter 11 bankruptcy court protection in late 2003.
The company is reporting $28 million in net income for the second quarter on $452 million in revenue, up from $14 million in net income on $390 million in revenue for the second quarter of 2003.
Magellan notes that the increase in revenue was due to a change in the way it accounts for some revenue from a Tennessee Medicaid contract. Originally, Magellan provided some services for the Tennessee Medicaid program through a joint venture, Premier Behavioral Health Systems of Tennessee L.L.C., and it excluded the revenue from its own financial statements. Now, as a result of a contract change and a change in accounting rules, Magellan has added $76 million in revenue related to the Premier contract to its own revenue figure.