Coventry Health Care, Inc. (CVH) reported third quarter earnings of 66 cents per share, which was above the Zacks Consensus Estimate of 54 cents. The company earned 73 cents in the year-ago quarter. Total operating revenues for the reported quarter increased 17.8% to $3.44 billion from the previous year's $2.92 billion.  Revenues from managed care premiums rose 20% to $3.15 billion, while revenues from management services decreased to $290.9 million from $298.4 million a year earlier. Due to reduced commercial risk and commercial management membership, total enrollment in Coventry plans increased 0.55% to 5.24 million members, mainly on gains in the Medicare D prescription drug program. The membership in that program increased 81,000 from the prior quarter. Total operating expenses for the quarter came in at $3.29 billion, up 18.6% from the year ago quarter. Medical costs, the major operating expense component, rose to $2.66 ...

Early this morning, Coventry Health Care Inc. (CVH) announced that it has agreed to acquire Preferred Health Systems, Inc. (commonly referred to as PHS), the wholly-owned health insurance subsidiary of Via Christi Health System, Inc.  PHS is based in Wichita, Kansas. It is a commercial health plan whose beneficiaries include more than 100,000 members for whom it assumes full insurance risk, and 20,000 members for whom PHS provides administrative services. The acquisition of PHS will further widen the customer base of the diversified national managed healthcare company in the Midwestern United States.  The transaction, expected to close in the next 90 to 120 days, will not affect Coventry ’s earnings in the first year.  PHS was incorporated in 1993 following strong support and encouragement from area physicians, St. Francis Regional Medical Center and St. Joseph Medical Center , which merged to form Via Christi Health ...

Magellan Health Services Inc. (MGLN) posted second-quarter earnings of 53 cents per share, matching the Zacks Consensus Estimate.

The company stated that sales fell 3.2% to $635.8 million, primarily due to the sluggish performance of its Public Sector, Commercial and Radiology Benefits Management segments.

Magellan also stated that it continues to anticipate full-year earnings of $2.04 to $2.59 per share.

The guidance is in-line with the Zacks Consensus Estimate of $2.21 per share, derived from 7 covering analysts, which has declined by a penny over the past month.

Meanwhile, the company said that it expects the acquisition of First Health Services Corp. from Coventry Health Care Inc. (CVH) to be completed later today. Magellan will pay $110 million in cash to Coventry for the deal and certain other assets related to the operation of First Health's business.

MGLN, a Zacks #3 Rank ("Hold") stock, has advanced more than 3% today on higher-than-usual

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