Avon’s Magellan Health Services is forming a joint venture with an Arizona health care company to vie for a chance to manage behavioral health services for the general Medicaid population in Arizona.
Magellan is teaming up with VHS Phoenix Health Plan LLC, a subsidiary of Vanguard Health Systems, which owns and operates 28 acute care and specialty hospitals across the country, to form Magellan of Arizona.
The new entity will respond to a request for proposals that is expected to be released by the state of Arizona in 2012 to manage behavioral health services for the general Medicaid population and integrated behavioral and physical health care for recipients with serious mental illness in Maricopa County.
Currently, Magellan provides health management services for Maricopa County, but that contract is set to expire in 2013.
The joint venture will be structured with Magellan Health Services of Arizona owning 80 percent of the entity and Phoenix Health Plan owning the other 20 percent.
