Aetna Completes Transaction And Launches A Full-Service Behavioral Health Business
Purchase from Magellan to strengthen product and service integration
HARTFORD, Conn., December 30, 2005 —
Aetna (NYSE: ΑET) today announced it has completed the purchase of the assets Magellan Health Services previously used to provide behavior health care services to Aetna’s members, and will assume ownership of the assets effective Dec. 31, 2005. As of Jan. 1, 2006, Aetna will launch a full-service behavioral health business and enter the market with approximately 11 million members. The transaction culminates more than a year of work by Aetna Behavioral Health to transition this behavioral health care service back to Aetna.
"This milestone is a tremendous accomplishment. We have been working hard to make sure this change in operations is seamless to our customers. By assuming management of this service, Aetna will be able to offer innovative, integrated programs that improve member health outcomes and personal productivity," said Mark Bertolini, head of Aetna Regional Businesses, which includes Aetna Behavioral Health. "Magellan has been a strong partner and we would like to thank them for their collaboration throughout this transition."
The assets purchased from Magellan include three dedicated behavioral health care service centers, a national provider network and nearly 500 employees who had been employed by Magellan. The service centers are located in El Segundo, Calif.; Sandy, Utah; and King of Prussia, Penn. The transaction is the result of an agreement between Aetna and Magellan negotiated in March 2003.
"This has been an incredible year for our business," said Mary Fox, head of Aetna Behavioral Health. "We launched an Employee Assistance Program in July 2004, and the program now has close to one million members. In October we initiated an Integrated Depression Management program focused on improving diagnosis and treatment of that disease at the primary care physician level which has been well accepted in the market. Completing this transaction means that we now have a full spectrum of products and services for plan sponsors and members."
As one of the nation’s leading providers of health care, dental, pharmacy, group life, behavioral health, disability and long-term care benefits, Aetna puts information and helpful resources to work for its approximately 14.65 million medical members, 13.03 million dental members, 9.34 million pharmacy members and 13.68 million group insurance members to help them make better informed decisions about their health care and protect their finances against health-related risks. Aetna provides easy access to cost-effective health care through a nationwide network of more than 700,000 health care professionals, including over 418,000 primary care and specialist doctors and 4,231 hospitals. For more information, please visit. www.aetna.com (Figures as of September 30, 2005)