Magellan Health President to Leave for Aetna Role
06/07/2012| 09:34am US/Eastern
By Tess Stynes
Magellan Health Services Inc. (>> Magellan Health Services Inc) President Karen S. Rohan plans to step down later this month to become the head of Aetna Inc.'s (>> Aetna Inc.) specialty products division.
Magellan Chairman and Chief Executive René Lerer will assume day-to-day management responsibilities and lead a review of Magellan's organizational structure.
Mr. Leher said Ms. Rohan "has been a great business partner and successfully managed the day-to-day operations of our business."
She has been president at Magellan since 2009. Prior to that she was president of Cigna Corp.'s (CI) group disability, dental and vision-care business.
At Aetna, Ms. Rohan will be responsible for the health insurer's dental and vision, group insurance and consumer financial solutions businesses, as well as Aetna's distribution strategy.
Magellan, a manager of behavioral health care, diagnostic imaging and other health-care services, has reported declining profits in recent quarters amid challenges in its commercial segment. The company has been focusing on developing capabilities to support an anticipated expansion in the Medicaid population.
Magellan shares closed Wednesday at $41.75 and were inactive premarket. The stock is down 16% this year.
Aetna shares were down 1.7% at $41.71 premarket.
Write to Tess Stynes at Tess.Stynes@dowjones.com