How new technology was Oxford's nemesis

Article Abstract:

Computer system problems have played a significant role in Oxford Health Plans' projections of losing at least $120 million for the 4th qtr 1997. The publicly-owned HMO also surprised Wall Street with a 3rd qtr 1997 loss of $78.2 million. An outdated and outmanned information system has resulted in Oxford's failure to place monthly bills with thousands of customer accounts, or track payments to hundreds of doctors and hospitals. Oxford's amount of uncollected payments from customers tripled to more than $400 million, and payments to care givers exceeded 50% to more than $650 million. Problems began with a new computer system that the 1.5-million customer Oxford installed in Oct 1996. Oxford failed to make adjustments to the system it began planning in 1993, when membership totalled only 217,000.

Finance, Telecommunications systems, Company systems management, Information management, OXHP

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Aetna to acquire Prudential Health unit; deal for $1 billion to create a managed-care giant serving 10% of the U.S

Article Abstract:

Wall Street is more pleased that Prudential HealthCare is sold than it is with the buyer, Aetna. Aetna is still digesting its two previous acquisitions of US Healthcare in 1996 and NYLCare in 1998. This latest purchase, for $1 billion, will make it the largest managed healthcare firm in the country, bigger now than Kaiser. About two-thirds of the country's doctors, 400,000 of them, will be under the control of Aetna, control the doctors have some objection to. Doctors have the agreement and support of the A.M.A. Also against the merger is Consumers for Quality Care.

Asset sales & divestitures, Direct Health and Medical Insurance Carriers, Hospital and medical service plans, Medical Care Insurance, Health Plan Administration, Management, Mergers, acquisitions and divestments, Abstract, Health insurance, Managed care plans (Medical care), Health insurance industry, Aetna Inc., AET, Health services administration, Prudential HealthCare Group Inc.

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Oxford to close some Medicare HMOs because of rising costs, low premiums

Article Abstract:

Oxford Health Plans Inc., which is a managed-care company located in Norwalk, Conn., has announced that it will shut down some of its Medicare HMO operations due to rising costs and low premiums. The affected health care plan currently serves 26,600 members or 17% of its total Medicare members. Industry analysts have said that the Federal government's strategy to hold down Medicare expenses has resulted in a number of cutbacks in services by US health care companies. Oxford previously had reported huge losses for 1997.

Comment:

Has announced that it will shut down some of its Medicare HMO operations due to rising costs and low premiums

Company Planning/Goals, Services discontinued, Article

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