Magellan Health, which has operations in Avon, said its fourth-quarter profits increased by nearly 17 percent, thanks mainly to a lower cost of care for the period.
The health and pharmacy management company — which moved its corporate headquarters to Arizona last year — recorded $21.5 million in profits, or 82 cents per diluted share, up from $18.5 million, or 67 cents, in the final quarter of 2013.
The increase came despite a 2.5 percent dip in net revenue, which fell to $982.4 million, primarily on terminated contracts. Magellan cut expenses and costs by $32.4 million, or 3.3 percent, during the quarter ended Dec. 31.
For 2014, the company’s net income of $79.4 million was down from $125.2 million in 2013. Higher costs and expenses for the year outpaced revenue growth.
