{
  "docId": "019dd923-622b-71dc-a6d9-f3b6efbbae97",
  "docSlug": "6b96d4422a6b",
  "documentTitle": "Magellan Health, Inc. (MGLN)",
  "authorId": "03_Starboard_Value",
  "authorName": "Peter A. Feld",
  "documentKindSlug": "shareholder-letter",
  "documentKindLabel": "Shareholder letter",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2019-02-22 00:00:00",
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  "notes": "Includes a waterfall-style chart comparing pre-acquisition EV + capital spent vs current EV, and a quote from the CEO to highlight failed strategic promises.",
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  "components": [
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      "kind": "callout",
      "text": "greater than $700 million of shareholder value, representing approximately 50% of today's market capitalization, has been destroyed since 2013 against the backdrop of a flourishing industry.",
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      "text": "Enterprise Value: $700M",
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      "kind": "paragraph",
      "text": "In addition to the aggressive acquisition strategy, and despite its subscale operations, Magellan simultaneously expanded into the Medicaid market...",
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      "kind": "paragraph",
      "text": "Unfortunately, despite more than doubling revenue from 2013-2018, largely due to Medicaid contract wins, profitability has failed to follow suit...",
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      "kind": "quote",
      "text": "Federal and state governments annually spend about $75 billion on individuals with SMI... Offering special population health management for high cost areas is a natural extension of our existing Behavioral Health services.",
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      "kind": "quote",
      "text": "“Federal and state governments annually spend about $75 billion on individuals with SMI, with around $50 billion currently carved into managed care. For long-term care, the annual Medicaid spending is over $150 billion, with less than 10% currently being managed. And for the developmentally disabled population, another $50 billion in spending with less than 5% managed. ...Offering special population health management for high cost areas is a natural extension of our existing Behavioral Health services. We have been talking with several existing as well as potential new health plan customers to see if we could assist them in managing these populations. We've used this as an inflection point to further refine how we will achieve our MCC special population growth strategy.” — CEO Barry Smith – Q3 2015 Earnings Call",
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      "kind": "source-note",
      "text": "Source: Company filings; Starboard estimates.",
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      "kind": "title",
      "text": "Magellan Value Destruction",
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      "beatName": "Problem & Complication",
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