Magellan Health To Triple Its Stake In Brooklyn Long-Term-Care Company

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Magellan Health Services Inc. says it plans to triple its stake in a New York City long-term-care company for a total investment of $25.5 million.

Magellan, a specialty insurer based in Avon, entered an agreement to invest in AlphaCare of New York, which is a Medicaid managed long-term-care HMO and Medicare company that focuses on New York’s population that is eligible for dual eligible for Medicaid and Medicare.

After the transaction is complete, Magellan will own 65 percent of the company. Magellan holds a 7 percent equity stake in AlphaCare from a previous investment of $2 million in the holding company, AlphaCare Holdings LLC. Magellan also loaned $6 million to the holding company.

The transaction, announced Tuesday, will bring Magellan’s total investment to $25.5 million, including the $8 million it already has given the company.

“AlphaCare presents us with a great opportunity to enter the New York market and leverage our combined expertise with the AlphaCare team to create an entirely new integrated care offering to help the state provide quality health care at affordable costs,” Scott R. Markovich, president of Magellan Complete Care, said in a prepared statement.

Magellan has an option to buy the rest of AlphaCare’s stock at a price yet to be determined after the end of 2016.

AlphaCare, headquartered in Brooklyn, was established in 2012 and began enrolling members in August 2013. Its current management will remain in place, Magellan said.

About Matthew Sturdevant

Full-time staff journalist at The Hartford Courant and magazine freelancer with a master's degree in writing from Dartmouth. My work has appeared in The Los Angeles Times, The Chicago Tribune, Taiwan News, The Baltimore Sun and many other news sources. My blog has been referenced by Politico.com, the Kaiser Family Foundation, the Georgetown Law Library and a number of organizations in healthcare and business. Sturdevant’s blog is "a well-written wealth of ideas," said The Donald W. Reynolds National Center for Business Journalism, (businessjournalism.org, May 18, 2011). I have experience writing for newspapers, magazines, Web sites and blogs as well as shooting and editing video. I made regular appearances on news-talk radio and on the NBC affiliate station in Corpus Christi, Texas. I made occasional appearances on the Fox affiliate in Connecticut promoting Hartford Courant articles.

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One thought on “Magellan Health To Triple Its Stake In Brooklyn Long-Term-Care Company

  1. Joe

    AlphaCare Healthcare is growing quickly. The recently moved to new offices in downtown Brooklyn.

    AlphaCare Healthcare NY has an allstar team with Shana Carrico CEO, Brian Morgan COO, Michael Irvin CCO.

    Ms. Carrico has many years of healthcare experience in key positions.

    Brian Morgan COO, Michael Irvin CCO. Mr. Morgan has many years of experience in MLTC. He previously worked for Emblem Health and has been with AlphaCare Healthcare for two years.

    Michael Irvin, CCO and SVP of Business Development, Mr. Irvin is a Registered Nurse who heads up the clinical department as well as business development. He was hired as a consultant and expert on MLTC enrollment and business development.

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