Oxford Health Plans Inc

Andrew Cassidy resigned as chief financial officer at Oxford Health Plans Inc. one day after the company reported a wider-than-expected third-quarter loss. Cassidy will remain as CFO until a replacement is found, the company said. The Norwalk, Conn.-based operator of health maintenance organizations said it has hired a search firm to recruit a successor. Oxford Health said delays in billing customers and paying doctors led to a wider loss in the third quarter than it forecast just last week.

UnitedHealth Group Inc., the biggest U.S. health insurer, agreed to buy Oxford Health Plans Inc. for about $4.9 billion in stock and cash. Oxford stockholders would receive 0.6357 UnitedHealth share and $16.17 in cash for each share they own, Minnetonka, Minn.-based UnitedHealth said. UnitedHealth is trying to add members to health plans and compete with companies such as Anthem Inc. and WellPoint Health Networks Inc. at a time when the U.S. economy is adding jobs slowly. Trumbull, Conn.

Oxford Health Plans Inc. said Monday that it lost $29 million, or 37 cents a diluted share, in the first quarter, in a report that raised hopes for the troubled managed-care company. The loss contrasts with a profit of $34.4 million, or 42 cents, a year ago. Oxford late last year ran into billing and computer problems, which saddled it with heavy losses. But the Norwalk, Conn.

Shares of Oxford Health Plans Inc. rose to a three-year high after a published report said the company was in talks to be acquired by WellChoice Inc., in a deal that would create one of the largest health insurers in the U.S. Northeast. Oxford officials did not return a call seeking comment on a Wall Street Journal story that WellChoice officials are in talks with Oxford to offer as much as a 25% premium over Oxford's closing price Friday. A WellChoice spokeswoman wouldn't comment.

The gap between what Oxford Health Plans Inc. owes doctors and what it expected to earn will cause it to post a fourth-quarter loss of about $120 million, the health insurer said. Investors had hoped the Norwalk, Conn.-based company was close to resolving the problems that caused the onetime industry trendsetter to report a third-quarter loss of $78.1 million, due largely to overestimating the premiums owed by patients. The setback comes after shares plunged from a high of $87.

HMO to Add Alternative-Medicine Specialists: Oxford Health Plans Inc. is expected to announce the addition of a network of alternative-medicine specialists to some of its health maintenance organizations, charting new territory for health-care companies. Norwalk, Conn.

Norwalk, Conn.-based Oxford Health Plans Inc. said more than 700 radiologists, orthopedists and other specialists agreed to treat its patients for a per-case fee, instead of billing for individual visits and treatments. Oxford Health, one of the largest U.S. health maintenance organizations, said it began this new offer to specialists in April.

Shares of Oxford Health Plans Inc. rose to a three-year high after a published report said the company was in talks to be acquired by WellChoice Inc., in a deal that would create one of the largest health insurers in the U.S. Northeast. Oxford officials did not return a call seeking comment on a Wall Street Journal story that WellChoice officials are in talks with Oxford to offer as much as a 25% premium over Oxford's closing price Friday. A WellChoice spokeswoman wouldn't comment.

Oxford Health Plans Inc. said it stopped marketing and most enrollment in its Medicare plans following a federal review that criticized the company. The managed-care firm, which offers coverage to Medicare patients in New York, New Jersey, Connecticut and Pennsylvania, said the action will let it improve its Medicare operations.

FPA Medical Management Inc. said Oxford Health Plans Inc., which is facing problems with billings, is current in all of its prepayments to FPA. Responding to investor questions about its exposure to the Norwalk, Conn.-based health maintenance organization, San Diego-based FPA said it has a customized process to receive paid claims information from Oxford. FPA's shares fell $2.13 to close at $19.88 on Nasdaq.

Chemical giant DuPont Co. said Wednesday that third-quarter operating earnings fell 14% because of surging raw material costs and the weak euro. It said those same problems could hurt it over the remainder of the year. DuPont said operating earnings declined to $537 million, or 51 cents a share, from $625 million, or 59 cents, a year earlier. Consolidated revenue was flat at $6.4 billion.

Oxford Health Plans Inc. said it stopped marketing and most enrollment in its Medicare plans following a federal review that criticized the company. The managed-care firm, which offers coverage to Medicare patients in New York, New Jersey, Connecticut and Pennsylvania, said the action will let it improve its Medicare operations.

Oxford Health Plans Inc. said Monday that it lost $29 million, or 37 cents a diluted share, in the first quarter, in a report that raised hopes for the troubled managed-care company. The loss contrasts with a profit of $34.4 million, or 42 cents, a year ago. Oxford late last year ran into billing and computer problems, which saddled it with heavy losses. But the Norwalk, Conn.

At the urging of New York state, Oxford Health Plans Inc. agreed to suspend a $9-million compensation package for its founder and outgoing chairman in light of the company's finances. Oxford said it will withhold future payments to Stephen Wiggins, pending discussions with the state's insurance department.

Oxford Health Plans Inc. reported a worse-than-expected loss of $285 million for the fourth quarter and said it is realigning its top management after having secured a $710-million rescue package. The troubled health-maintenance organization said investment firm Texas Pacific Group, based in Fort Worth and San Francisco, agreed to invest $350 million in Norwalk, Conn.-based Oxford and plans to raise another $350 million through a debt offering. Oxford named Norman C.

Oxford Health Plans Inc., the troubled health-care provider, said Monday that it will announce a top management shake-up and financing package this week. The company would not confirm speculation that its chairman and founder, Stephen F. Wiggins, would resign. But Oxford spokeswoman Nicole Reilly did say that the shake-up announcement--which could come as soon as today--would include information on Wiggins' future with the company.

Oxford Health Plans Inc. shareholders sued the company a day after a profit warning sent the health maintenance organization's stock plummeting 62%. The lawsuit contends that New York-based Oxford Health misled investors about problems with the company's computerized billing system. . . . Glaxo Wellcome said it named Robert Ingram chief executive, replacing Richard Sykes, who remains chairman.

Oxford Health Plans Inc., which warned investors it would post a third-quarter loss due to billing problems, said it lost $78 million during the period--worse than it had forecast. The big health-care provider, based in Norwalk, Conn., said it suffered a net loss of $78.2 million, or 99 cents a share, compared with net income of $26.7 million, or 33 cents a share, a year ago. Another health-care provider--Aetna Inc.

Franklin Mutual Advisors Inc., a group of investment funds managed by Michael Price, reported that it holds a 5.3% stake in troubled managed-care company Oxford Health Plans Inc. Oxford shares rose $2.94 to close at $19.25 on the Nasdaq Stock Market. The stock rose as much as 15% on news of Price's stake. The filing with the Securities and Exchange Commission limits how actively Price can attempt to influence the Norwalk, Conn.

New York insurance regulators said they fined Oxford Health Plans Inc. $3 million because of the HMO's inability to pay claims on time and other irregularities. State Insurance Superintendent Neil Levin said Oxford will also pay an estimated $500,000 in restitution to customers and health-care providers. The fine is the second-largest ever levied by New York insurance regulators and the largest ever against a health insurer.