Saturday, July 24, 2010

Business briefs: Healthways sees rise in profits

Franklin-based Healthways Inc. said revenues in the second quarter slipped 1.3 percent, but profits per share rose by one-third as the company managed through a series of terminated or renegotiated contracts.
Total revenues for the quarter were $175.5 million compared with $177.8 million for the second quarter a year ago. CEO Ben R. Leedle, Jr., said revenues were "consistent with expectations."

Profits were $11.8 million, or 34 cents per share, up from $8.9 million or
26 cents a share a year ago. Healthways continued to grow its international presence through new or expanded contracts. Earlier this summer, it won an agreement with International SOS Assistance Inc. to provide chronic care management for a Department of Defense overseas program for 15,000 remote active duty service members and their families in 146 countries.

The company also adjusted its projection for revenues for 2010, establishing a new range of $695 million to $718 million compared with an earlier range of $677 million to $718 million. Healthways' stock went up 48 cents a share, or 4 percent, to close at $12.44 per share in Nasdaq trading Thursday.

RelatedMagellan cancels Cumberland Heights contract


Cumberland Heights files suit

Nashville's oldest in-patient alcohol and drug rehab center, Cumberland Heights, has filed a lawsuit in Davidson County Chancery Court against the health insurance management company it says is threatening its very existence.

Cumberland Heights wants an injunction against Magellan Behavioral Health, which canceled the rehab center's contract earlier this month citing problems with patient care. Magellan manages the claims of insurers such as BlueCross BlueShield of Tennessee, which amounts to control over about 45 percent of Cumberland Heights' $9.7 million in annual revenues, the lawsuit says.

Cumberland Heights, which said it has done nothing wrong, said if the contract dispute isn't resolved, it could become insolvent or have to layoff hundreds of employees. Magellan has declined to comment but said it was taking care of existing patients at the 177-acre facility on River Road.


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