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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): APRIL 27, 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 EVENTS.
Registrant has added to its senior management team, including four
newly created positions. Dr. Alan Muney was named Executive Vice President,
Chief Medical Officer; Allen Sorbo, Vice President of Actuarial and Underwriting
Services; Jon Richardson, Special Counsel to the Chief Executive Officer; and
John Markus, Vice President, Compliance Officer. In addition, Charles G. Berg
was named Executive Vice President of Medical Delivery.
Dr. Muney, 44, will report to Oxford CEO-elect Norman C. Payson, M.D.
and be responsible for medical affairs, quality management and medical
management/medical analytics. Prior to joining Oxford, Dr. Muney was Chief
Medical Officer and Senior Vice President of Medical Affairs at Avanti Health
Systems.
Mr. Berg, 40, will report to Registrant's President William Sullivan
and will oversee network management and provider contracting. Mr. Berg was most
recently President of the eastern region of San Diego-based FPA Medical
Management Inc., a physician practice management company. Prior to joining FPA,
he was a founder and CEO of Health Partners, Inc., a physician network
management company that operated in the New York metropolitan market and merged
with FPA in 1997.
Mr. Sorbo, 44, will be responsible for establishing reserves and
rate-setting and underwriting policies. Mr. Sorbo is a former Principal at
Towers Perrin's Integrated HealthSystems Consulting.
Mr. Richardson, 54, will report to Dr. Payson and will work with Dr.
Payson, together with Jeffery Boyd, the Company's General Counsel, in developing
strategic responses for legal issues facing the Company. Most recently, Mr.
Richardson served in the same position at HealthSource, Inc.
Mr. Markus, 46, will be responsible for developing programs to ensure
the Company's strict adherence to ethical practices and regulatory standards.
Mr. Markus was formerly a health care attorney with Greenberg, Traurig, Hoffman,
Lipoff, Rosen & Quentel. From 1990 to 1996, he served as Executive Vice
President of National Health Laboratories, Inc., responsible for compliance and
quality assurance.
********
Robert M. Smoler, Executive Vice President and Chief Executive Officer
of the New York region, and David B. Snow, Jr., Executive Vice President of
Medical Delivery Systems and Government Programs, have resigned to pursue other
interests.
********
The Company's earnings Press Release dated April 27, 1998 is attached
as an Exhibit hereto and incorporated herein by reference.
ITEM 7. Financial Statements and Exhibits
(c) Exhibits
99 Press Release dated April 27, 1998
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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: April 27, 1998 By: /s/ BRENDAN R. SHANAHAN
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BRENDAN R. SHANAHAN
Vice President and Controller
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OXFORD HEALTH PLANS, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit Page
Number Description of Document Number
99 Press Release dated April 27, 1998 5
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EXHIBIT 99
OXFORD LETTERHEAD
Re: Oxford Health Plans, Inc.
800 Connecticut Avenue
Norwalk, CT 06854
For Further Information:
Nicole Reilly
Hill and Knowlton
(212) 885-0353
FOR IMMEDIATE RELEASE
April 27, 1998
OXFORD HEALTH PLANS ANNOUNCES
FIRST QUARTER RESULTS
NORWALK, CONNECTICUT, APRIL 27, 1998--Oxford Health Plans, Inc.
(NASDAQ:OXHP) today reported that it incurred a first quarter 1998 net loss of
$45.3 million, or 57 cents per share, compared to net income of $34.4 million,
or 44 cents per share (42 cents per diluted share), in the first quarter of
1997. First quarter 1998 results were adversely affected by a nonrecurring
after-tax restructuring charge of $16.3 million, or 20 cents per share, for
severance and other costs expected to be incurred in connection with the
restructuring of certain administrative and management functions. Total revenues
for the first quarter ended March 31, 1998 reached $1.2 billion, a 24 percent
increase from $987.3 million a year ago.
Oxford's enrollment totaled approximately 2,096,000 members at March
31, 1998, an increase of almost 88,000 during the first quarter of 1998 and
nearly 21 percent higher than membership at the end of last year's first
quarter.
The Company's medical-loss ratio for the first quarter of 1998 was
87.9% compared with 80.2% in the first quarter of 1997. Administrative expenses,
exclusive of the nonrecurring restructuring charge, were 16.5% of operating
revenue for the first quarter of 1998 compared with 15.4% for the first quarter
of 1997 and 17.6% for the full year 1997.
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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, Illinois, Florida and New Hampshire through its direct sales force
and through independent insurance agents and brokers.
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