This was the first earnings report released since Kenneth Fasola was hired as the company's CEO.
Magellan Health's net revenue for 2019 slid just over 2% but other financial metrics showed growth throughout the year.
According to the company's Q4 earnings report, Magellan reported net income of $55.9 million for the full year, a 131.2% increase compared to 2018.
The company also achieved diluted earnings per share (EPS) of $2.28, up 135.1% year-over-year, along with a segment profit of $252.7 million, up 11% over the same period.
This was the first earnings report released since Kenneth Fasola was hired as the company's CEO. Fasola previously served as CEO of HealthMarkets, Inc., a Texas–based health insurer, and will replace outgoing CEO Barry Smith.
"We have made significant investments in Magellan Complete Care and Magellan Rx Management, and, as a result, we have experienced recent growth within those businesses, including the pharmacy PBA win in California," Fasola said in a statement. "I believe we have far more growth potential across our businesses. In particular, I see a large market for a revitalized and expanded suite of payer solutions within our Behavioral and Specialty Health business."
For Q4 2019, the managed care company saw net revenue slide 2.3% and posted a segment profit of $72.9 million, up 354.4% compared to Q4 2018.
Magellan also recorded a net income of $20.6 million, an improvement compared to a $28 million loss this last year, and a diluted EPS of $0.84, up from a diluted loss per share of $1.16.
For 2020, Magellan projects net revenue between $7 billion to $7.4 billion, net income between $42 million to $62 million, and diluted EPS in the range of $1.69 to $2.49.
For complete financial information, review Magellan's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance 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