ALSO NOTED: Outsourcing contracts worth $800M; Chutes & Ladders: Evans steps down as Red Cross CEO; and much more...

> Magellan Health Services is expected to make a bid for National Imaging Associates, a specialist in controlling diagnostic imaging costs. Article (Wall Street Journal sub. req.)

> Market analyst Datamonitor puts the worth of healthcare outsourcing contracts at $800 million, with the market expected to grow to $1.1 billion by 2008. Article

> Chutes & Ladders: Marsha J. Evans stepped down as president and CEO of the Red Cross. She will be replaced on an interim basis by Jack McGuire. Release

> Hospitals in Pennsylvania are testing VisualDX, the image-based disease identification system made by Logical Images. Release

> McKesson said it has signed a deal that will see its PACS system implemented at facilities throughout the Denver-based Catholic Health Initiatives system, which operates in 19 states. Article

> A group of Pennsylvania hospitals participating in a pilot project allowing them to preform angioplasties are complaining about new rules governing the project. Article

And Finally... Surgeons work to save a pregnant woman after she nearly dies in a skydiving accident. Article