Magellan Health announced early Wednesday that the CEO of its managed-care division, Sam Srivastava, is leaving the company at the end of the year.
Srivastava's employment is being "terminated without cause" on Dec. 28, according to a filing with the Securities and Exchange Commission. The managed-care division, called Magellan Healthcare, is the company's biggest, bringing in about 60% of its revenue.
Magellan Chairman and CEO Barry Smith will oversee the managed-care division in addition to his current duties, the company said.
Magellan did not provide further information about the reasons behind Srivastava's termination. But Ana Gupte, equity analyst with Leerink Partners, wrote in a research note on Wednesday that Magellan has struggled with execution.
Srivastava came to Magellan to lead the behavioral health and integrated-care businesses in 2013.
Magellan Health's net income totaled $110.2 million in 2017 on revenue of $5.8 billion. The managed-care division reported revenue of roughly $3.5 billion, while pharmacy benefit management and dispensing revenue totaled about $2.4 billion.
