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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MAY 6, 1997
OXFORD HEALTH PLANS, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-19442 06-1118515
(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) Identification No.)
800 Connecticut Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
(203) 852-1442
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS.
Registrant's Press Release, dated May 6, 1997, is attached as an Exhibit
hereto and incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
(99) Press Release dated May 6, 1997
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
OXFORD HEALTH PLANS, INC.
Date: May 7, 1997 By: /s/ ANDREW B. CASSIDY
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ANDREW B. CASSIDY
Chief Financial Officer
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
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Exhibit Page
Number Description of Document Number
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(99) Press Release dated May 6, 1997 4
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Re: Oxford Health Plans, Inc.
800 Connecticut Avenue
Norwalk, CT 06854
For Further Information:
Stephen F. Wiggins
Chairman and CEO
(203) 852-1442
FOR IMMEDIATE RELEASE
May 6, 1997
OXFORD HEALTH PLANS REPORTS 86 PERCENT
EARNINGS INCREASE IN FIRST QUARTER
NORWALK, CONNECTICUT, MAY 6, 1997--Oxford Health Plans, Inc.
(NASDAQ:OXHP) today reported that first quarter 1997 net earnings rose 86
percent on a revenue increase of 50 percent when compared with the first quarter
of 1996. The earnings growth was primarily attributable to increased enrollment
in the Company's fully insured programs.
Total revenues for the first quarter ended March 31, 1997 reached
$987.3 million, a 50 percent increase from $658.10 million a year ago. Operating
earnings jumped 80 percent to $60.0 million compared with $33.2 million in the
first quarter of 1996. Net earnings increased 86 percent to $34.4 million, or
$.42 per share, from $18.5 million, or $.25 per share, in the prior year's first
quarter.
Oxford's enrollment totaled approximately 1,738,800 members at March
31, 1997, an increase of over 200,000 during the first quarter of 1997 and
almost 45 percent higher than the membership at the end of last year's first
quarter. Almost all of this new membership has come from fully insured
enrollment which has continued to grow in the second quarter of 1997.
Approximately 62,000 net new members have enrolled since the end of March 1997,
bringing total membership to over 1,800,000 as of May 1, 1997. The strong
earnings and enrollment growth continue to reflect the popularity and quality of
the Company's products.
"Strong earnings and revenue growth in the first quarter of 1997
continue to demonstrate the fundamental strength of the Company's business,"
said Stephen F. Wiggins, Oxford's Chairman and Chief Executive Officer. "We've
made progress on all our important initiatives, which we are convinced will
continue to differentiate Oxford's products."
The Company's medical-loss ratio for first quarter of 1997 was 80.2%
compared with 79.9% in the first quarter of 1996. The increase is primarily
attributable to increased pharmacy costs and higher hospital reimbursement costs
in New York due to the enactment of the Health Care Reform Act of 1996.
Administrative expenses were 15.4% of operating revenue for the first
quarter of 1997, compared with 16.4% for the first quarter of 1996.
-more-
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Oxford Health Plans, Inc.
May 6, 1997
The Company's balance sheet continues to show higher levels of premiums
receivable resulting from delays in billing associated with the conversion of
certain of the Company's operations to a new computer system. Medical costs
payable continue to reflect delays in claims payments associated with this
system conversion and renegotiation of hospital contracts under the New York
Health Care Reform Act, but the increase has been mitigated by progress in
paying backlogged claims and advance payments to physicians and hospitals
totaling $89.4 million as of March 31, 1997.
#####
Oxford's product lines include traditional health maintenance
organizations, point-of service plans, third-party administration of employer
funded benefit plans, Medicare and Medicaid plans, and dental plans. Oxford
markets its health plans to employers in New York, New Jersey, Pennsylvania,
Connecticut and New Hampshire through its direct sales force and through
independent insurance agents and brokers.
FINANCIAL TABLES FOLLOW
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(IN THOUSANDS, EXCEPT PER SHARE AND MEMBERSHIP DATA)
(UNAUDITED)
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1997 1996
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Revenues:
Premiums earned $970,115 648,182
Third-party administration, net 3,076 3,182
Investment income, net 14,124 6,776
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Total revenues 987,315 658,140
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Expenses:
Health care services 777,736 518,216
Marketing, general and administrative 149,784 106,760
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Total expenses 927,520 624,976
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Operating earnings 59,795 33,164
Equity in net loss of affiliate (900) (1,050)
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Earnings before income taxes 58,895 32,114
Provision for income taxes 24,516 13,597
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Net earnings $ 34,379 18,517
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Earnings per common and common equivalent share:
Primary $ .42 .25
Fully diluted $ .42 .25
Weighted average common stock and
common stock equivalents outstanding:
Primary 82,337 75,080
Fully diluted 82,390 75,374
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Membership at
March 31 Increase
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MEMBERSHIP HIGHLIGHTS 1997 1996 (Decrease)
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Freedom Plan 1,143,500 806,600 336,900
HMO 224,300 151,100 73,200
Medicare 134,600 80,800 53,800
Medicaid 189,900 123,500 66,400
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Total Fully Insured 1,692,300 1,162,000 530,300
Self-funded 46,500 38,400 8,100
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Total Membership 1,738,800 1,200,400 538,400
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1997 AND DECEMBER 31, 1996
(IN THOUSANDS, EXCEPT SHARE DATA)
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ASSETS
MAR. 31, Dec. 31,
1997 1996
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(Unaudited)
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Current assets:
Cash and cash equivalents $ 4,280 72,160
Short-term investments-available-for-sale, at market value 786,141 767,312
Premiums receivable 388,228 315,126
Other receivables 23,860 26,343
Prepaid expenses and other current assets 6,893 5,814
Deferred income taxes 14,458 13,771
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Total current assets 1,223,860 1,200,526
Property and equipment, at cost, net of accumulated depreciation and
amortization of $81,832 in 1997 and $69,739 in 1996 114,963 104,954
Deferred income taxes 6,520 5,700
Other noncurrent assets 37,372 35,559
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Total assets $1,382,715 1,346,739
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Medical costs payable $ 657,825 624,359
Trade accounts payable and accrued expenses 61,851 51,256
Income taxes payable 21,878 9,902
Unearned premiums 1,995 63,052
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Total current liabilities 743,549 748,569
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Stockholders' equity:
Preferred stock, $.01 par value, authorized 2,000,000 shares -- --
Common stock, $.01 par value, authorized 400,000,000
shares; issued and outstanding 78,053,972 in 1997
and 77,376,282 in 1996 781 774
Additional paid-in capital 405,294 391,602
Retained earnings 230,169 195,790
Unrealized net appreciation of investments 2,922 10,004
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Total shareholders' equity 639,166 598,170
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Total liabilities and shareholders' equity $1,382,715 1,346,739
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