Magellan Health Services Inc Q3 2009 Earnings Call Transcript

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2009-10-30 14:25:17.0

Tags: Oppenheimer & Co., Call Transcript, Earnings, Workforce Management, Financial Accounting, Human Resources, Finance, Seeking Alpha, Magellan Health Services Inc.

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Carl McDonald - Oppenheimer & Co

Carl McDonald - Oppenheimer & Co.

First question, thinking specifically about the WellCare contract, but maybe you can speak more broadly in terms of the early termination clauses that’s normally included in these contract. I’m sure there is an opt out provision, but how onerous are the terms if there is a change of control at some point in the future with any of the contracts?

Jonathan Rubin

We obviously don’t disclose individual contract requirements. We’re obviously aware of the market and consolidations of the marketplaces. In the state contracts, states often have the ability to terminate at their discretion, which is typical of any state contract as it relates to our health plan contracts we build in protections that we think are appropriate as it relates to the current conditions.

Carl McDonald - Oppenheimer & Co.

And second question is on the, if there is a deal expected for the release of the next audit for Maricopa County?

Jonathan Rubin

There has not been any dates scheduled as far as we know.

Carl McDonald - Oppenheimer & Co.

Okay. The last audit was released?

Jonathan Rubin

About a year ago. I think actually maybe in January, so maybe 10 months ago. January or February something like that, but it represented the study that was done I think in October 8th. So we would and it represent the data from before that, so it only represented a few months of our actual involvement.

Operator

Your next question comes from Joshua Raskin - Barclays Capital.

Joshua Raskin - Barclays Capital

Maricopa just curious Ren

 

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