Saturday, November 02, 2002

Magellan gets loan extension on the very day its CEO resigns
Baltimore Sun story - "Magellan Health Services Inc. received a breather from its lenders yesterday and also announced the abrupt departure of its chief executive officer. Yesterday's action by its lenders gives Magellan at least until the end of the year to come into compliance with the terms of its loan agreements..." See also Magellan Health CEO Quits Amid Overhaul in the Washington Post and Mental-health insurer's woes threaten care, a North Jersey News story - "The mental-health care of millions of New Jersey residents may be jeopardized if financial troubles at the nation's largest mental-health insurer force it into bankruptcy. The potential failure of Magellan Health Services could result in interruptions in patient treatment and problems in getting authorization for hospital admissions or doctor visits. It could also cause delayed or reduced payments to hospitals, doctors, and therapists, hospital executives warn."