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Resource ID: #17747
Subject: Health Care
Source: Wall Street Journal (New York)
Affiliation: 
Date: 8-May-01

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Description

Drawing on the stories of mental health patients and psychiatrists, The Wall Street Journal reports that the managed behavioral care industry "has transformed the treatment of mental illness and substance abuse." These firms, contracted with health maintenance organizations to provide mental health care to their members, "sprang up in response to soaring costs for mental-health benefits." The largest such firm is Magellan Health Services Inc. "As Magellan has grown, so have complaints." Many HMOs and psychiatrists have pulled out of Magellan's "phantom network," while plaintiffs seeking class-action status are accusing the company of fraud.

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