AlphaCare Receives Majority Investment from Magellan Health Services

AlphaCare of New York, a newly-licensed Medicaid Managed Long Term Care HMO and Medicare Plan focused on serving the needs of New York’s long-term care and dual eligible populations, received a majority investment from Magellan Health Services Inc. (NASDAQ: MGLN).

Upon completion of the transaction, subject to regulatory approval, Magellan will own 65% of the company.

Established in 2012 and led by Shana Carrico, CEO, AlphaCare has acquired the requisite licensure and contracts in New York State, including an HMO license as well as a managed long term care contract with the state. It operates a Managed Long-Term Care Plan in Bronx, Kings, New York, Queens and Westchester Counties and Medicare Plans in Bronx, Kings, New York and Queens Counties.
It began enrolling members in August.
In addition, the company applied to participate in the New York State Department of Health’s Fully Integrated Duals Advantage (FIDA) Demonstration Program in Bronx, Kings, New York and Queens Counties and was selected to participate in all four counties. AlphaCare’s participation in the FIDA program is subject to completion of a readiness review, the receipt of adequate rates and entry into a contract for the FIDA program.
The anticipated time period for the FIDA demonstration is April 2014 through December 2017.

The current leadership of AlphaCare of New York will continue to lead it, with direction from a board of directors that will include representatives of Magellan.



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