Magellan Health Services Inc. (MGLN) reported third quarter results last Friday. The company posted a 31.9% growth in net income to $31.0 million or 88 cents per share, compared to $23.5 million or 58 cents per share in the year-ago period, and easily surpassed the Zacks Consensus Estimate by 21 cents. The strong result was primarily driven by the acquisition of First Health coupled with the solid performance of the Specialty Pharmacy segment. Magellan Health offers managed behavioral healthcare, radiology benefits management and pharmaceutical management services to health plans, insurance companies, corporations, labor unions and various governmental agencies in the U.S. During July this year, the company completed the acquisition of First Health Services Corp., a subsidiary of Coventry Health Care Inc. (CVH). First Health provides pharmacy benefits administration, health care management and IT services to state Medicaid programs. The company said net revenues recorded ...

CorVel Corp (CRVL) is an independent provider of medical cost containment and managed care services. The company’s services are designed to manage the medical costs of workers’ compensation and other health care benefits primarily for coverage under group health and auto insurance policies. CorVel provides networks of preferred providers, claims administration, case management, utilization management, and medical bill review to more than 2,000 clients nationwide.

CorVel announced on June 10, 2008 record earnings per share of $0.44 for the 1st quarter of 2008 versus $0.37 in the 1st quarter last year. Revenues in the 1st quarter were $77 million, up from last year’s $70 million. The company’s introduction of full-service workers compensation solution, named Enterprise Comp, contributed greatly to the improvement in the company’s figures. Management expects the positive trends in the health care management industry to continue for the foreseeable future, which should bode well for the company.

CorVel’s specialty is

...