Magellan Health, Inc.
Oct 16, 2008

Magellan Health Services and CHOICES Network of Arizona Reach Agreement on Transfer of Eight Behavioral Direct Care Clinics

Magellan Progresses in Clinic Transfers as Envisioned by ADHS/DBHS


Magellan Health Services, Inc. and CHOICES Network of Arizona today announced that they have reached agreement to transfer eight behavioral direct care clinics that Magellan of Arizona currently operates in its role as the Maricopa County Regional Behavioral Health Authority (RBHA) to CHOICES. The agreement is further progress in the changes envisioned by the Arizona Department of Health Services (ADHS) when Magellan of Arizona was awarded the RBHA contract in 2007. With the CHOICES agreement, Magellan now has plans in place for the transfer of more than half of its direct care facilities to adult provider network organizations in Maricopa County.

The West McDowell and Heatherbrae clinics will officially transition to CHOICES Network of Arizona in November. The Park North and Townley clinics will transition in December; Thomas Road and Tempe clinics in January 2009; and South Central and Arcadia in February 2009. Service recipients served by each of these clinics will be notified of the change through a letter. There will be no change in the way care is provided or in the clinical and medical staff serving consumers as a result of these transitions.

"We at the Department of Health Services are very happy that Magellan reached an agreement with CHOICES and that they will be joining Southwest Network as the second adult provider network in Maricopa County," said acting Deputy Director of Behavioral Health Services Dr. Laura K. Nelson. "We look forward to meeting with CHOICES in the near future to discuss our mutual goals toward a more recovery-oriented system."

Richard Clarke, Ph.D., CEO of Magellan Health Services of Arizona, said, "The transition of these clinics to CHOICES represents another significant step in fulfilling the vision set forth by ADHS for system transformation. CHOICES will be a valuable partner in our overall effort to provide the best care possible and highest level of system support to persons with serious mental illness and their families in Maricopa County."

"We are pleased to have reached an agreement with Magellan and look forward to providing high quality behavioral health care to consumers at all eight clinic locations," said Ron Smith, CEO of CHOICES Network of Arizona. "CHOICES believes in the transformation of Maricopa County's system of care - we are eager to be a part of that change and apply our long history of excellence to these new locations."

Under Magellan's contract with the Arizona Department of Health Services, the company's 23 direct care clinics and urgent psychiatric center, which it acquired last year from the previous managed care contractor in the course of assuming management of the program, will be transitioned to community provider network organizations by October 2009.

About Magellan

For more information about Magellan of Arizona, visit or call Magellan Member Services at 800-564-5465.

Magellan Health Services, Inc. (Nasdaq:MGLN) manages public sector behavioral health care programs covering nearly two million individuals through direct contracts with government agencies in Florida, Iowa, Nebraska, Pennsylvania, and Tennessee. It also manages behavioral health care as a subcontractor to leading health plans serving Medicaid programs in Georgia, Indiana, Nevada, and Texas. Headquartered in Avon, Conn., Magellan is a leading specialty health care management organization. In addition to behavioral health care, the company manages radiology benefits and specialty pharmaceuticals. Its customers include health plans, corporations, and government agencies.

About CHOICES Network of Arizona

For more information about CHOICES Network of Arizona, call (602) 952-3400.

CHOICES Network of Arizona, Inc. is a Provider Network Organization (PNO) which is part of the Maricopa County behavioral health service system under Magellan of Arizona, the Regional Behavioral Health Authority. As a PNO, CHOICES has the responsibility for ensuring the provision of effective behavioral health services through direct provision of case management services and oversight of a network of provider agencies. CHOICES works collaboratively with Magellan and the other Maricopa County PNOs to ensure recovery-based care.

CHOICES sponsor agencies include Arizona Healthcare, Chicanos por la Causa, National Council on Alcoholism and Drug Dependence (NCADD), New Arizona Family Incorporated (NAFI), TERROS and Triple R Behavioral Health.

CHOICES members include Ebony House, Quality Care Network, Native American Connections, Stand Together and Recover (STAR), North Valley Visions of Hope and consumer representation from the community.

Source: Magellan Health Services, Inc.