A company insider with a background in the psychiatric insurance business hopes to lead Magellan Health Services toward domination in the behavioral managed-care and disease management industry.
Henry Harbin, M.D., a 51-year-old psychiatrist, was named president and chief executive officer of Atlanta-based Magellan last week by the company's board. He replaces E. Mac Crawford, 49, who became the top executive at MedPartners of Birmingham, Ala. Harbin had been CEO of Magellan's managed behavioral and medical specialty divisions since 1997.
Previously, Harbin served as Magellan's executive vice president, a title he gained when the company acquired a 51% stake in Green Spring Health Services in 1995. Harbin founded Green Spring, a manager of behavioral healthcare programs and insurance plans, in 1989.
As it prepares to exit the healthcare provider business, Magellan will focus on expanding its behavioral managed-care and disease management businesses.
By adding disease management services, Magellan hopes to make itself more attractive to other major health plans and large employers seeking contracts, Harbin said.
"Our goal now is cross-selling," Harbin said in an interview last week.
Magellan is selling the remainder of its provider operations to Charter Behavioral Health System, also of Atlanta, to Crescent Operating of Fort Worth, Texas, for $310 million. That deal will close in the second quarter (March 9, p. 13).
Proceeds from the sale of the provider operations will be used to purchase smaller disease management and behavioral healthcare companies. "We haven't run out of acquisition opportunities," Harbin said.
In another change for Magellan, attorney Robert Miller was named president of the company's board. Miller, 56, recently retired as a partner in the Atlanta-based firm King & Spalding, which has represented Magellan and Charter since 1969.
Magellan is the nation's largest behavioral healthcare manager, providing services to about 58 million people. It has annual revenues of $1.3 billion.