MAGELLAN HEALTH,INC. (NASDAQ:MGLN) Files An 8-K Other EventsItem 8.01. Other Events
On December 22, 2016, the Commonwealth of Virginia (the “Commonwealth”) announced that it has selected Magellan Complete Care of Virginia, a subsidiary of Magellan Health, Inc. (the “Company”), to participate in all six regions of Virginia’s Managed Long Term Services and Supports (“MLTSS”) initiative, also known as the Commonwealth Coordinated Care Plus Program (the “Program”). The Company is one of seven plans selected to serve approximately 213,000 individuals with complex care needs through an integrated care model, which will be a phased in regionally beginning in July 2017. The overall Program is expected to generate annual revenues of approximately $3.5 billion. The Commonwealth is in the process of determining the allocation among the seven plans, and there can be no assurance that the business will be allocated equally between the seven plans. The award is subject to final negotiations and execution of the contract, and there can be no assurance that final agreement will be reached.
Cautionary Statement
This 8-K contains forward-looking statements within the meaning of the Securities Exchange Act of 1934 and the Securities Act of 1933, as amended, which involve a number of risks and uncertainties. All statements, other than statements of historical information provided herein, may be deemed to be forward-looking statements including, without limitation, statements regarding the expected start date and annualized revenue from the Program. These statements are based on management’s analysis, judgment, belief and expectation only as of the date hereof, and are subject to uncertainty and changes in circumstances. Without limiting the foregoing, the words “believes,” “anticipates,” “plans,” “expects,” “may,” “should,” “could,” “estimate,” “intend” and other similar expressions are intended to identify forward-looking statements. Actual results could differ materially due to, among other things, the possible election of certain of the company’s customers to manage the healthcare services of their members directly; changes in rates paid to and/or by the company by customers and/or providers; higher utilization of health care services by the company’s risk members; delays, higher costs or inability to implement new business or other company initiatives; the impact of changes in the contracting model for Medicaid contracts; termination or non-renewal of customer contracts; the impact of new or amended laws or regulations; governmental inquiries; litigation; competition; operational issues; health care reform; and general business conditions. Additional factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, but are not limited to, the risks discussed in the “Risk Factors” section included within the company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016, and the company’s subsequent Quarterly Reports on Form 10-Q filed during 2016. Readers are cautioned not to place undue reliance on these forward-looking statements. The company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of this Current Report on Form 8-K.
