Magellan Health Services Inc. says a major customer has declared its intent to pull its administrative services contract worth about $40 million from the Avon provider of health management services.
Magellan identified the customer in an Securities and Exchange commission filing today as being in its commercial behavioral healthcare segment and to which it mainly provides administrative services and some risk services.
The customer notified Magellan that it does not intend to renew the administrative services only portion (ASO) of its contract when it expires on Dec. 31, the SEC filing said.
Magellan said in the filing the ASO portion of the contract generated revenues of around $40 million in 2009.
A Magellan spokesman declined to identify the customer.
Magellan serves managed-care providers, including WellPoint Inc. and Cigna, as well as corporations and government agencies.
