News Release Details

Jan 19, 2015
NIA Magellan Broadens Capabilities to Include Management of Chiropractic Care, Physical Therapy, Occupational Therapy and Speech Therapy

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Magellan Health, Inc. (NASDAQ: MGLN) today announced that NIA Magellan, which offers a suite of specialty solutions to address many complex areas of healthcare, plans to broaden its capabilities to include management of chiropractic care, physical therapy, occupational therapy and speech therapy.

Each year, more than half of Americans over the age of 18 develop a musculoskeletal injury that lasts longer than three months. With more than 36 million Americans receiving chiropractic care services, and physical therapy projected to grow at five percent annually, adding these capabilities to its broad product spectrum will enable NIA Magellan to address growing health care costs on behalf of customers.

"These new capabilities are a natural extension of our focus on musculoskeletal management, and will provide our customers with the highest level of care management on behalf of their members," said Tina M. Blasi, chief executive officer of NIA Magellan. "Providing appropriate, high-quality chiropractic care, as well as physical, occupational or speech therapy, can help improve outcomes and reduce costs. We're excited about expanding to include physical medicine as part of a comprehensive musculoskeletal solution. We can now offer physical medicine as a standalone solution, or as part of our comprehensive Musculoskeletal Program."

NIA Magellan's expanded capabilities in this area are the result of a planned acquisition of HSM Physical Health, Inc. ("HSM"), a privately-held specialty cost containment and utilization management company focused on physical and musculoskeletal health specialties. HSM has rigorous clinical and cost-management programs — including a national provider network, evidence-based clinical guidelines, advanced analytics and administrative best practices - to provide quality, cost-effective care. Additionally, HSM has an experienced leadership team that will continue to oversee the day-to-day operations of HSM going forward, in concert with the NIA Magellan team. HSM was founded in 1985 and serves more than 3 million members across 23 states. Magellan has entered into a definitive agreement to acquire all of the outstanding shares of stock of HSM. The closing is anticipated to be completed within the next few weeks.

"HSM sees a strong business and cultural fit with NIA Magellan," said David Olsen, President and CEO of HSM. "This acquisition affords HSM the ability to access NIA Magellan's deep bench of clinical and analytics expertise and a strong balance sheet to enhance our service capabilities and broaden the portfolio of cost management products available to the marketplace."

NIA Magellan's suite of specialty solutions includes comprehensive musculoskeletal management, as well as programs that manage diagnostic imaging services, the evaluation and therapy associated with cardiology services, radiation oncology, obstetrical ultrasound, sleep management and genetic testing.

About Magellan Health: Headquartered in Scottsdale, Ariz., Magellan Health, Inc. is a healthcare management company that focuses on fast-growing, complex and high-cost areas of healthcare, with an emphasis on special population management. Magellan delivers innovative solutions to improve quality outcomes and optimize the cost of care for those we serve. Magellan's customers include health plans, managed care organizations, insurance companies, employers, labor unions, various military and government agencies, third party administrators, consultants and brokers. For more information, visit MagellanHealth.com.

Magellan Health, Inc.
Media Contact:
Laura Schuntermann, 860-507-1822
lgschuntermann@magellanhealth.com
or
Investor Contact:
Renie Shapiro Silver, 877-645-6464
rshapiro@magellanhealth.com

Source: Magellan Health, Inc.

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