Oxford Health Plans Announces Steps to Strengthen Operations
PR Newswire, Thursday, November 06, 1997 at 16:20
NORWALK, Conn., Nov. 6 /PRNewswire/ -- Oxford Health Plans, Inc.
(NASDAQ:OXHP) announced today a number of actions designed to strengthen the
Company's operations and provide additional assurance to customers and
providers concerning its products and services. These actions are being taken
under a plan approved by Oxford's Board of Directors and reviewed by the New
York State Insurance Department as part of their continuing examination of the
company. The following actions were announced by the Company today:
1. The Company announced it had hired Kevin F. Hickey as an Executive Vice
President, focusing on operations. Mr. Hickey was formerly President
of Health Plans of America and Senior Vice President of Operations at
Aetna Managed Health Plans. At Aetna, Hickey managed 55 service sites
with 12,700 employees. These service operations handled 38 million
customer calls and were responsible for the payment of more than
$28 billion in claims annually.
2. The Company is in the process of retaining nationally recognized
information systems consulting firms to review and report on its
information systems capabilities and strategic plan, and to correct
shortcomings in Oxford's processing of claims and premiums, all of
which will facilitate its growing membership.
3. On Tuesday, November 4, 1997, the Company announced steps taken to
strengthen its reserves for medical claims. The Company's New York
subsidiaries will obtain an audit of their September 30, 1997 financial
statements, including a certification of reserves, by KPMG Peat
Marwick LLP, to provide further assurance as to its financial strength.
4. In addition to replacing the CFO, the Company is undertaking a thorough
review of its finance operations with a view to strengthening
management and systems where appropriate. KPMG Peat Marwick LLP will
provide additional resources to Oxford to assist in this effort.
5. The Company's Board of Directors will be expanded by at least two
members and professional firms have been retained to identify
candidates with substantial experience leading complex, high
transaction service businesses.
"These actions are being taken to solidify our operations and to assure a
smooth recovery from our recent challenges," said William Sullivan, Oxford
Chief Executive Officer. "We are taking steps necessary to demonstrate that
our customers and providers will be well served as Oxford works to further
strengthen its operations."
SOURCE Oxford Health Plans, Inc.
-0- 11/6/97
/CONTACT: Oxford Health Plans, Inc., 203-851-1020/ |
