Behavioral-healthcare provider Magellan Health Services, Farmington, Conn., and long-term-care firm Kindred Healthcare, Lexington, Ky., reported large earnings gains in the first quarter. Magellan said operating efficiencies drove first-quarter net income up to $23.6 million, or 64 cents per share, nearly double the year-ago quarter's income of $12.9 million, or 35 cents per share. Revenue rose 2.8% to $453 million. Magellan provides behavioral-health services at about 5,500 locations. Kindred said tax gains, income from discontinued operations and improved admissions boosted its earnings to $36.9 million, or 83 cents per share, nearly triple the year-ago quarter's income of $13.8 million, or 32 cents per share. Revenue rose 8.7% to $940 million. Kindred said overall admissions grew 11% and non-Medicare and -Medicaid admissions grew 26% over the year-ago quarters. Kindred owns or operates 249 nursing homes and 73 long-term-care hospitals.-- by Joseph Mantone
Magellan, Kindred report double-digit income gains
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