Health care management provider Magellan Health Services Inc. said it has taken a larger stake in a managed long-term care plan and HMO in New York, adding $17.5 million.
Scott Markovich, president of Magellan Complete Care, said the investment provides a great opportunity for the Avon company to enter the New York market.
Magellan’s investment in AlphaCare now amounts to $25.5 million. Magellan had previously invested $2 million for a 7 percent equity stake and had also loaned AlphaCare $6 million.
Magellan said it will have the option to purchase the remaining portion of AlphaCare’s stock beginning in 2017.
AlphaCare has a New York HMO license and a managed long-term care contract. It has also applied to participate in a New York pilot program that aims to serve so-called “dual” patients enrolled in both Medicare and Medicaid programs.
