Magellan Health Services, Inc. MGLN announced today that Magellan
Complete Care of Arizona, a joint venture owned 80% by Magellan and 20% by
Vanguard/Phoenix Health Plan, has been notified by the state of Arizona that
it has not been selected as the Regional Behavioral Health Authority (RBHA) in
GSA6 (Maricopa County). The RBHA contract is for the management of the
publicly funded behavioral health system that delivers mental health,
substance abuse and crisis services for adults, youth, and children and
includes an integrated behavioral and physical health care system for
individuals with Serious Mental Illness. Magellan's existing contract to
manage behavioral health services began on September 1, 2007, and was
previously extended through September 30, 2013; such contract generated net
revenues of $758.3 million for the year ended December 31, 2012.
Magellan Complete Care of Arizona has the right to protest the State's
decision, and is currently evaluating the scoring of its bid as well as other
relevant information to determine whether it will file a protest.
“We are disappointed in the State's decision especially given our track record
of success in transforming the public behavioral health system in Maricopa
County,” said Dr. Richard Clarke, CEO of Magellan Health Services of Arizona.
“Regardless of this decision, our work has had a positive impact on health
care in Maricopa County. We will continue to seek opportunities to continue
our work on behalf of the people of Arizona.”
The company's full year 2013 guidance assumed that the contract would be
awarded to Magellan Complete Care of Arizona. The company is assessing the
impact of this award notification on its 2013 guidance.
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