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Magellan May Run Part Of CIGNA Radiology Network

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A company known for administering mental health benefits may expand an arm that handles CAT, PET and MRI scans.

The managed care unit of CIGNA Corp., Philadelphia, is considering the possibility of hiring the National Imaging Associates unit of Magellan Health Services Inc., Avon, Conn., to manage high-tech radiology services for 3 million CIGNA members in 12 states, according to Magellan.

Once the arrangement is up and running, it could generate about $200 million in revenue per year, Magellan estimates.

In related news, Magellan has made John Donahue, the chief executive officer of NIA unit, chairman, and named Eric Reimer, Magellan’s chief development and strategy officer, to be NIA’s new CEO.