UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


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                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934

                               (Amendment No. _)*


                         Magellan Health Services, Inc.
 -------------------------------------------------------------------------------

                                (Name of Issuer)

                Ordinary Common Stock, par value $0.01 per share
 -------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                    559079207
                  --------------------------------------------
                                 (CUSIP Number)

                                 March 30, 2004
 -------------------------------------------------------------------------------
             (Date of Event Which Requires Filing of this Statement)



Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

        [ ] Rule 13d-1(b)
        [X] Rule 13d-1(c)
        [ ] Rule 13d-1(d)


*The  remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).



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CUSIP No. 559079207                 SCHEDULE 13G             Page  2  of 5 Pages

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1       NAME OF REPORTING PERSONS./I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
        (Entities Only).

        North Sound Capital LLC (1)
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2       CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*           (a) [X]
        (See Instructions)
                                                                    (b) [ ]
--------------------------------------------------------------------------------
3       SEC USE ONLY


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4       CITIZENSHIP OR PLACE OF ORGANIZATION

        Delaware
--------------------------------------------------------------------------------

                5.   SOLE VOTING POWER          0
NUMBER OF
SHARES          ----------------------------------------------------------------
BENEFICIALLY    6.   SHARED VOTING POWER        1,500,000
OWNED BY
EACH            ----------------------------------------------------------------
REPORTING       7.   SOLE DISPOSITIVE POWER     0
PERSON
WITH            ----------------------------------------------------------------
                8.   SHARED DISPOSITIVE POWER   1,500,000

--------------------------------------------------------------------------------
9      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

       1,500,000
--------------------------------------------------------------------------------
10     CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES  [ ]
       (See Instructions)


--------------------------------------------------------------------------------
11     PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

       5.6%(2)
--------------------------------------------------------------------------------
12     TYPE OF REPORTING PERSON*

       OO
--------------------------------------------------------------------------------
                      *SEE INSTRUCTIONS BEFORE FILLING OUT

(1)  The ultimate managing member of North Sound Capital LLC is Thomas McAuley.
     The Reporting Person may be deemed the beneficial owner of the shares in
     its capacity as the managing member of North Sound Legacy Fund LLC, North
     Sound Legacy Institutional Fund LLC and North Sound Legacy International
     Ltd. (the "Funds"), who are the holders of such shares. As the managing
     member of the Funds, the Reporting Person has voting and investment control
     with respect to the shares of common stock held by the Funds.

(2)  The Issuer filed its Form 10-K on March 30, 2004 which disclosed that the
     outstanding amount of its Ordinary Common Stock par value $0.01 per share
     had decreased from 35,300,000 to 26,900,268 due to a reorganization of the
     Issuer. This decrease in outstanding share amount caused the Reporting
     Person to file this Schedule 13G.



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CUSIP No. 559079207                 SCHEDULE 13G             Page  3  of 5 Pages

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Item 1(a).        Name of Issuer:

                  Magellan Health Services, Inc.

Item 1(b).        Address of Issuer's Principal Executive Offices:

                  16 Munson Road
                  Farmington, Connecticut 06032

Item 2(a).        Name of Person Filing.
Item 2(b).        Address of Principal Business Office or, if None, Residence.
Item 2(c).        Citizenship.

                  North Sound Capital LLC
                  53 Forest Avenue, Suite 202
                  Old Greenwich, CT 06870
                  Delaware limited liability company

Item 2(d).        Title of Class of Securities:

                  Ordinary Common Stock, par value $0.01 per share

Item 2(e).        CUSIP Number:

                  559079207

Item 3.           If this statement is filed pursuant toss.ss.240.13d-1(b) or
                  240.13d-2(b) or (c), check whether the person filing is a:

                  Not Applicable

Item 4.           Ownership.

                  The following is information regarding the aggregate number
                  and percentage of the class of securities of the issuer
                  identified in Item 1 as of March 30, 2004:

                  (a)      Amount beneficially owned: 1,500,000 shares of
                           Ordinary Common Stock

                  (b)      Percent of Class: 5.6%

                  (c)      Number of shares as to which such person has:

                           (i)      sole power to vote or direct the vote: 0

                           (ii)     shared power to vote or direct the vote:
                                    1,500,000



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CUSIP No. 559079207                 SCHEDULE 13G             Page  4  of 5 Pages

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                           (iii)    sole power to dispose or direct the
                                    disposition of: 0

                           (iv)     shared power to dispose or direct the
                                    disposition of: 1,500,000

Item 5.           Ownership of Five Percent or Less of a Class.

                  Not Applicable

Item 6.           Ownership of More than Five Percent on Behalf of Another
                  Person.

                  Not Applicable

Item 7.           Identification and Classification of the Subsidiary Which
                  Acquired the Security Being Reported on By the Parent Holding
                  Company.

                  Not Applicable

Item 8.           Identification and Classification of Members of the Group.

                  Not Applicable

Item 9.           Notice of Dissolution of Group.

                  Not Applicable

Item 10.          Certification.

                  Certification pursuant to ss.240.13d-1(c):

                  By signing below I certify that, to the best of my knowledge
                  and belief, the securities referred to above were not acquired
                  and are not held for the purpose of or with the effect of
                  changing or influencing the control of the issuer of the
                  securities and were not acquired and are not held in
                  connection with or as a participant in any transaction having
                  that purpose or effect.



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CUSIP No. 559079207                 SCHEDULE 13G             Page  5  of 5 Pages

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                                    SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

         Dated:  April 7, 2004


                                            NORTH SOUND CAPITAL LLC


                                            By: /s/ Thomas McAuley
                                                --------------------------------
                                                Name:  Thomas McAuley
                                                Title: Chief Investment Officer