Centene Sells Magellan at a Loss as BH Deals Reshape Market
In a BHB+ exclusive, Behavioral Health Business reviews three 2026 deals shaping the behavioral health sector. Centene agreed to sell managed behavioral health company Magellan Health to new investment firm Madison Health Group, recognizing a roughly $513 million loss after buying it for $2.2 billion in 2021; Centene's earnings calls cited rising behavioral health and ABA therapy costs, particularly in its Medicaid business, as a driver of the divestiture. Separately, Universal Health Services acquired virtual provider Talkspace for $835 million to build an outpatient-to-inpatient behavioral health pipeline, while Discovery Behavioral Health is cited as a cautionary example of overleveraging under private equity ownership. Once closed, Magellan would become the first independent managed care company focused solely on behavioral health, led by veteran executives including former Centene president Ken Fasola.