2017-09-07 / Around Town

Magellan Health to Bring 100 New Jobs to Rhode Island

By Joseph T. O’Connor

Opportunities are coming to the Ocean State in the form of 100 new jobs.

In an Aug. 31 interview, Rhode Island Gov. Gina Raimondo broke the news with Newport This Week that Magellan Health was expanding its presence in the state.

“The company was considering different locations outside of Rhode Island, but they’re going to stay and they’re going to add jobs,” Raimondo told NTW. “They’re going to double in size.”

Magellan, an Arizona-based healthcare management company with a Newport office on Bellevue Avenue that currently employs 86 workers, plans to retain those jobs while adding more, according to a statement released by state economic development organization Rhode Island Commerce Corporation (RICC), which Raimondo also chairs.

During its Sept. 5 meeting in Providence, RICC approved Magellan Health for $2.1 million in incentives over the next decade, a move expected to provide an economic boon for Rhode Island’s economy.

An economic impact analysis completed by third-party consultant Appleseed Inc. projects an increase of approximately $6 million in state tax revenues over 12 years, and a $10.6 million increase in annual state GDP by 2021 as a result of Magellan’s expansion, according to the RICC statement.

“Magellan has offices in 26 states and Washington, D.C., but we chose to expand this area of our business in Rhode Island, based on the access to talent, our existing footprint in the state, as well as the incentives offered by the Rhode Island Commerce Corporation,” said Barry M. Smith, chairman and CEO of Magellan Health.

Magellan, which Fortune magazine selected among its 2017 World’s Most Admired Companies, plans to create 75 new jobs that it would get tax credits for, and another

25 jobs for which it would not receive credits. The jobs will be filled over the next three years, according to the statement, in the fields of healthcare, data science, administration, data analysis, pharmacy and project management.

The company is utilizing the $2.1 million award under RICC’s Qualified Jobs Incentive Act over a term of 10 years, and the award requires Magellan to maintain the new jobs in Rhode Island for at least 12 years, the statement said. Tax credits will not be disbursed to Magellan until after the jobs are filled and the employees have been paying taxes for one year.

“We're pleased that Magellan's leaders have chosen to invest in Rhode Island," said state Secretary of Commerce Stefan Pryor. “Magellan is not alone. This is the 18th company expanding or landing in Rhode Island with support from our Qualified Jobs program.”

Magellan Health is the 18th Qualified Jobs deal since the program was implemented, according to the statement. Cumulatively, the program is helping to foster more than 1,500 new jobs in Rhode Island in a range of industries and job types.

Gov. Raimondo says Magellan’s expansion is an example of how the Ocean State has turned around its unemployment rate, which as recently as 2010 hovered around 10 percent. The current rate is 4.3 percent.

“There are more jobs in Rhode Island now than in any other time in our state’s history,” she said, “and it is my goal to have Rhode Islanders first in line for these jobs.”

While it wasn’t clear where, exactly, the new jobs will be located, Magellan hopes to expand in Newport County, according to Colleen Johnson, Magellan’s vice president of external communications.

“In terms of growth, we are looking at additional office space in the greater Aquidneck Island area,” Johnson wrote in a Sept. 6 email to NTW.

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