Magellan Health Services Inc., the nation's largest mental health insurer, yesterday named Steven J. Shulman as chief executive.

Shulman has held numerous positions in the health care field, including those of chairman, president and chief executive of Prudential HealthCare Inc. He most recently has been chairman and chief executive of Internet HealthCare Group, an early-stage health care venture fund which he founded in 2000.

Internet HealthCare is based in Avon, Conn. Shulman is to remain as chairman of Internet HealthCare, but not as its chief executive.

At Magellan, Shulman succeeds Daniel S. Messina, who resigned Nov. 1 from the financially struggling company.

Saul E. Burian, senior vice president of Houlihan Lokey Howard & Zukin Capital, the Los Angeles-based financial adviser to an ad hoc committee representing major investors in Magellan, said: "Shulman is an excellent choice to lead Magellan. His appointment is another sign of progress by the company."

Dr. Henry T. Harbin, chairman of Magellan, said Shulman "brings to Magellan a powerful combination of extensive managed-care expertise, a behavioral-health background and the experience of leading major health care organizations."

Magellan's stock, which traded at close to $8 a share earlier this year, closed yesterday at 19 cents, down 1 cent.