The largest mental health care carveout company in the U.S. has decided to shed its Canadian operations.

Magellan Health Services announced on December 7 that it has found a buyer for CHC, its Canadian subsidiary. The unit will be purchased by the Canadian company FGI.

The money from the sale will go to reduce Magellan’s debt. In October the managed care firm, which is based in Columbia, Md., announced that it was divesting its psychiatric practice-management business to reduce debt and allow it to focus on its core business of managing mental and behavioral health care services.

Magellan said in a press release that its intent in selling the Canadian unit "is to concentrate exclusively on U.S.-based operations. . .and be better able to enhance service to our customers and members while improving the overall financial health of the company." ▪