Magellan Health, a for-profit managed care company, saw its first-quarter revenues rise to nearly $2 billion, according to financial results released May 11.
The Phoenix-based company's revenues were up 3.2 percent in the first quarter of 2020 compared to the same period a year prior. The company, which focuses on special populations and complete pharmacy benefits, also saw its first-quarter net income skyrocket to $18.3 million, compared to $400,000 in the same quarter a year prior.
The COVID-19 pandemic "presents uncertainties," the company's CFO, Jonathan Rubin, said in a prepared statement, but the crisis didn't negatively affect results.
The year ahead will bring a significant transaction for Magellan Health. The company said April 30 that it entered into a definitive agreement with Molina Healthcare to divest its Magellan Complete Care business of Medicaid and Medicare plans for $850 million. The deal will bring Magellan's managed care operations across six states under the Molina umbrella. The addition of Magellan Complete Care will grow Molina's membership in government-sponsored health plans to more than 3.6 million across 18 states.
The deal is subject to regulatory approvals.