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Biotech / Medical : Oxford Health Plan (OXHP) -- Ignore unavailable to you. Want to Upgrade?


To: Thomas Haegin who wrote (801)1/23/1998 10:51:00 AM
From: Tony van Werkhooven  Read Replies (1) | Respond to of 2068
 
Re: Oxford buyout.
It may be to early for a buyout. At this time it is far from clear how wide and deep the finanacial hole is. Aside from system problems that have been well discussed in the press, there are serious defiencies in management information. Management information drives price setting. Margins in this buisiness are quite small. Hence any errors can have dramatic impacts on the bottom line. Recognition and response to pricing problems take time.

Management information is also needed for any third party to do adequate due diligence. Any potential offer will require a lot of work and leaps of faith if contemplated at this time.



To: Thomas Haegin who wrote (801)1/23/1998 11:04:00 AM
From: Johnnie W.  Read Replies (3) | Respond to of 2068
 
Tom, I think Equitable bought Healthsouce (HS). Interestingly, HS was losing money too but its membership and assets were worth $22.