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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000909518-04-000014.txt : 20040107
<SEC-HEADER>0000909518-04-000014.hdr.sgml : 20040107
<ACCEPTANCE-DATETIME>20040107165709
ACCESSION NUMBER:		0000909518-04-000014
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040105
FILED AS OF DATE:		20040107

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MAGELLAN HEALTH SERVICES INC
		CENTRAL INDEX KEY:			0000019411
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HOSPITALS [8060]
		IRS NUMBER:				581076937
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		6950 COLUMBIA GATEWAY
		STREET 2:		STE 400
		CITY:			COLUMBIA
		STATE:			MD
		ZIP:			21046
		BUSINESS PHONE:		4109531000

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHARTER MEDICAL CORP
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SHULMAN STEVEN J
		CENTRAL INDEX KEY:			0001245353

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-06639
		FILM NUMBER:		04513639

	BUSINESS ADDRESS:	
		STREET 1:		6950 COLUMBIA GATEWAY DR
		STREET 2:		SUITE 400
		CITY:			COLUMBIA
		STATE:			MD
		ZIP:			21046
		BUSINESS PHONE:		4109531000

	MAIL ADDRESS:	
		STREET 1:		1564 NE EXPRESSWAY
		STREET 2:		ATTN: BJ PURCELL
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30329
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>shulman1-7_form4ex.xml
<TEXT>
<XML>
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<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
   <periodOfReport>2004-01-05</periodOfReport>
   <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000019411</issuerCik>
        <issuerName>MAGELLAN HEALTH SERVICES INC</issuerName>
        <issuerTradingSymbol>MGLN</issuerTradingSymbol>
   </issuer>
   <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001245353</rptOwnerCik>
            <rptOwnerName>SHULMAN STEVEN J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O MAGELLAN HEALTH SERVICES INC.</rptOwnerStreet1>
            <rptOwnerStreet2>6950 COLUMBIA GATEWAY DRIVE</rptOwnerStreet2>
            <rptOwnerCity>COLUMBIA</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>21046</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
         <isDirector>1</isDirector>
         <isOfficer>1</isOfficer>
         <isTenPercentOwner>0</isTenPercentOwner>
         <isOther>0</isOther>
         <officerTitle>CEO</officerTitle>
      </reportingOwnerRelationship>
   </reportingOwner>
 <nonDerivativeTable>
   <nonDerivativeTransaction>
      <securityTitle>
         <value>Ordinary Common Stock, $0.01 par value</value>
      </securityTitle>
      <transactionDate>
         <value>2004-01-05</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>83752</value>
         </transactionShares>
         <transactionPricePerShare>
            <footnoteId id="F1"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
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      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>83752</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
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            <value>D</value>
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      <securityTitle>
         <value>Ordinary Common Stock, $0.01 par value</value>
      </securityTitle>
      <transactionDate>
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      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>83752</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>11.94</value>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
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         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
            <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </nonDerivativeTransaction>
 </nonDerivativeTable>
 <derivativeTable>
   <derivativeTransaction>
      <securityTitle>
         <value>Stock Option (Right to Buy)</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>11.94</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2004-01-05</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
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      <transactionAmounts>
         <transactionShares>
           <value>413002</value>
         </transactionShares>
         <transactionPricePerShare>
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            <footnoteId id="F5"/>
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         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
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      <exerciseDate>
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      <expirationDate>
         <value>2014-01-05</value>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Ordinary Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>413002</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>413002</value>
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      <ownershipNature>
         <directOrIndirectOwnership>
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   <derivativeTransaction>
      <securityTitle>
         <value>Stock Option (Right to Buy)</value>
      </securityTitle>
      <conversionOrExercisePrice>
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      </conversionOrExercisePrice>
      <transactionDate>
         <value>2004-01-05</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
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      <transactionAmounts>
         <transactionShares>
           <value>619505</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
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         <transactionAcquiredDisposedCode>
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      <exerciseDate>
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      <expirationDate>
         <value>2014-01-05</value>
      </expirationDate>
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           <value>Ordinary Common Stock</value>
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         <underlyingSecurityShares>
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           <value>619505</value>
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      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
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   </derivativeTransaction>
   <derivativeTransaction>
      <securityTitle>
         <value>Stock Option (Right to Buy)</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>11.94</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2004-01-05</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>A</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>413004</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>0</value>
            <footnoteId id="F5"/>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F4"/>
      </exerciseDate>
      <expirationDate>
         <value>2014-01-05</value>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Ordinary Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>413004</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>413004</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
 </derivativeTable>
   <footnotes>
      <footnote id="F1"> Grant of restricted stock</footnote>

      <footnote id="F2"> Options vest in 33% increments on January 5 of each of 2005, 2006 and 2007. Options are exercisable only if market price of the common stock has increased from 1/5/04 through the determination date at a cumulative rate of 16% per annum, with daily compounding, over $11.94 per share. The determination of whether these options are exercisable shall be determined on each trading day occurring on or after a vesting date and shall be based on the average closing prices of the common stock for each of the 20 consecutive trading days ending on each such determination date. In all events, the options fully vest and are exercisable on 1/5/11.</footnote>

      <footnote id="F3"> Options vest in 33% increments on January 5 of each of 2005, 2006 and 2007. Options are exercisable only if the market price of the common stock has increased from 1/5/04 through the determination date at a cumulative rate of 10% per annum, with daily compounding, over $11.94 per share. The determination of whether these options have become exercisable shall be determined on each trading day occurring on or after a vesting date and shall be based on the average closing prices of the common stock for each of the 20 consecutive trading days ending on each such determination date. In all events, options shall become fully vested and exercisable on 1/5/11.</footnote>

      <footnote id="F4"> Options vest in 33% increments on January 5, of each of 2005, 2006 and 2007.</footnote>

      <footnote id="F5"> The zero (&quot;0&quot;) in this column is a &quot;dummy&quot; amount, solely for the purpose of permitting the use of a descriptive footnote stating that the price is not applicable.</footnote>
   </footnotes>
   <ownerSignature>
      <signatureName>/s/ Steven J. Shulman</signatureName>
      <signatureDate>2004-01-07</signatureDate>
   </ownerSignature>
</ownershipDocument>

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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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