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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): OCTOBER 14, 1998
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 EVENT.
The Company's Press Release, dated October 14, 1998, is attached as an
Exhibit hereto and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99(a) Press Release, dated October 14, 1998
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: October 14, 1998 By: /s/ KURT B. THOMPSON
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Kurt B. Thompson
Principal Accounting Officer
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit Page
Number Description of Document Number
99(a) Press Release dated October 14, 1998 4
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EXHIBIT 99(A)
FOR IMMEDIATE RELEASE
CONTACT: Madeline Hardart, Public Relations (212)885-0417 - Oxford
Deborah Abraham, Investor Relations (203)851-2636 - Oxford
George Ryan, Investor Relations (612)829-3551 -- HRM
Laura Pigott, Public Relations (612)946-7582 -- HRM
HEALTH RISK MANAGEMENT AGREES TO BUY
OXFORD PENNSYLVANIA SUBSIDIARY
FOR $10.4 MILLION
NORWALK, CT, October 14 - Oxford Health Plans, Inc. (NASDAQ: OXHP)
announced that Health Risk Management, Inc. of Minneapolis, Minnesota ("HRM")
has signed a definitive agreement to purchase the shares of capital stock of
Oxford Health Plans (PA), Inc., its wholly-owned Pennsylvania HMO subsidiary
("OXPA"), for $10.4 million subject to regulatory approvals.
OXPA is a Pennsylvania-licensed HMO serving approximately 65,000 Pennsylvania
Medicaid members and 7,000 commercial members. Since April 1998, HRM has assumed
the medical costs risk of OXPA's 65,000 Pennsylvania Medicaid members. Oxford
will continue to serve approximately 8,400 PPO members in Pennsylvania through
Oxford Health Insurance, Inc., but the Company expects that membership to
decrease over time.
OXPA will work closely with HRM to ensure continuity of care and a smooth
transition for its members. The transaction is expected to close by year-end,
subject to receipt of required regulatory approvals.
Oxford also recently announced its plan to withdraw from the Florida market and
the signing of an agreement to effectively transfer its Illinois membership to
Blue Cross and Blue Shield of Illinois. These moves, which are part of Oxford's
turnaround plan, will enable the company to focus on its core commercial
business in the New York City tri-state area.
Health Risk Management (NASDAQ: HMRI), headquartered in Minneapolis, delivers
electronically integrated health plan management services through its
QualityFIRST(R) Medical Risk Management System(SM), which features electronic
clinical support guidelines and comprehensive reporting services. HRM also
markets national provider networks, disability/workers' comp management,
disease/demand management and administrative services including electronic claim
payment. HRM's clients include self-insured employers, HMOs, PPOs, IPAs,
insurance companies, unions, hospital systems and government entities to clients
nationwide and in Canada.
Oxford Health Plans, Inc. is based in Norwalk, Connecticut. The product lines of
its subsidiaries include traditional health maintenance organizations,
point-of-service plans, third-party administration of employer funded benefit
plans, Medicare plans and Medicaid plans. Oxford
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markets its health plans to employers in several states through its direct sales
force and through independent insurance agents and brokers.
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