Magellan Health unit selected by County of Cambria, Pennsylvania
On December 22 the County of Cambria, Pennsylvania, announced that it has selected Magellan Behavioral Health of Pennsylvania a subsidiary of Magellan Health, to be the MCO of the HealthChoices Behavioral Health program for Cambria County. The contract will be for a two-year period beginning on July 1, 2017, with the potential for an additional one-year renewal period. The contract is expected to generate annual revenue in the range of approximately $35 million to $40 million. This represents the sixth county in the Commonwealth of Pennsylvania for which the Company is the behavioral health MCO. The Company's combined annualized revenues for these six counties is projected to be approximately $500 million. The Company and Cambria are in the process of finalizing and executing the contract, and there can be no assurance that final agreement will be reached.