Kenneth Fasola's hiring to lead the company came one day before the release of Q3 earnings.
Ahead of the release of Magellan Health's Q3 earnings report, the company appointed Kenneth Fasola as its new chief executive officer (CEO) Thursday evening.
Fasola previously served as CEO of HealthMarkets, Inc., a Texas–based health insurer, and will replace outgoing CEO Barry Smith.
Smith announced his retirement prior to the release of the company's Q2 earnings report in July. Fasola's hire will become effective November 14.
"I am deeply honored to be named CEO and join the tremendous team at Magellan Health during such a dynamic time in the healthcare industry," Fasola said in a statement. "Over the coming months, I plan to dedicate time with key stakeholders, the Board of Directors and Magellan’s executive leadership team to refine our strategy and lead this company into the next phase of growth."
Related: Magellan Produces Mediocre Earnings as CEO Announces Retirement
This marks the second quarter in a row that Magellan has announced a leadership change ahead of its earnings report, which was again marked by declines in numerous financial metrics.
The Scottsdale–based for-profit managed care company's net revenue slipped by 1.3% year-over-year while net income fell 21.6% and earnings per share (EPS) dropped by 21.1%.
Additionally, the company's adjusted net income dropped to $30.2 million, a decrease of 16.3%, segment profit fell 18.3%, and adjusted EPS fell 15.2%.
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As a result of the weak quarterly results, Magellan is lowering its year-end guidance on net revenue, net income, and EPS.
Additional Magellan Q3 earnings report highlights:
- Restricted cash and investments decreased by $27.7 million, year-to-date.
- Magellan's pharmacy management segment profit grew by $1.3 million, totaling $33.6 million.
- Healthcare segment profit fell from $61.7 million in Q3 2018 to $44.7 million in Q3 2019.
For complete financial information, review Magellan's filing with the Securities and Exchange Commission.
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.
Photo credit: KIEV, UKRAINE - Jan 3, 2019: Magellan Health Managed care company logo seen displayed on smart phone - Image / Editorial credit: IgorGolovniov / Shutterstock.com