Magellan RBM Unit Posts 44% Profit Growth for Q1
Magellan Health Services reported a 6.3% Q1 year-over-year increase in revenue, with a 24.9% overall segment profit before EBITA. Three of five segments reported growth in profits, including the radiology benefits management segment, with profits of $19,274,000 in Q1 2013 compared to $13,361,000 in Q1 2012, a 44% increase. The RBM segment brought in $90,278,000 in revenue in Q1 2013 compared to $76,857,000 in Q1 2012. Pharmacy solutions, not including dispensing revenue, declined from $60,898,000 in Q1 2012 to $58,150,000 Q1 2013. The company also reported increases in revenue and profit for the commercial and public sector insurance segments: Commercial segment Q1 revenue increased from $180.5 million in 2012 to $187.8 million in 2013; and public sector revenue increased from $388.8 million to $406.6 million. Earnings per share for Q1 2013 year-over-year increased 34.7%. “Magellan had a strong first quarter, with good performance across our businesses,” said Barry M. Smith, chief executive officer, in a press release. “This is an important year as we continue to execute on our Magellan Complete Care and Magellan Pharmacy Solutions initiatives. In each of those areas, we continue to build out our capabilities in order to fuel aggressive growth, and we are seeing traction in the market. “Magellan Complete Care, for example, is well positioned for market entry in Florida, having just completed its review as part of the final regulatory approval process. We expect to begin enrolling members by the third quarter with the ultimate objective of becoming a specialty plan serving Medicaid recipients with Serious Mental Illness. Smith also expressed disappointment about the award of the Maricopa County, Arizona contract to another vendor for the period beginning October 1, 2013, which led to a downward adjustment in guidance for 2013. News Release