Radiology and healthcare benefits management firm Magellan Health Services of Avon, CT, said it has entered into a binding letter of agreement with Empire Blue Cross Blue Shield (BCBS) of New York to convert its existing fee-based administrative-services-only (ASO) contract for radiology benefits management to a fully insured risk arrangement.
Under terms of the agreement with Empire, the current contract, under which Magellan subsidiary National Imaging Associates manages MRI, CT, and PET services for nearly 1.4 million Empire members on an ASO basis, will convert to a three-year, full-risk arrangement for approximately 800,000 of those members upon achievement of certain regulatory approvals, according to the company.
Magellan said that the new contract is expected to generate annual revenues of more than $100 million, and that it expects regulatory approval of the deal in the third quarter this year.
In related news, the company also said that implementation of a CIGNA risk radiology contract has been delayed until later in the second quarter or into the third quarter this year. Magellan is currently contracted to provide services in 11 states for Cigna.
By AuntMinnie.com staff writers
April 3, 2007
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