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

To: Premier who wrote (1622)	5/18/1998 3:18:00 AM
From: Mang Cheng	Respond to of 2068

"OXFORD HEALTH PLANS INC (OXHP)Quarterly Report (SEC form 10-Q)" "Net Losses; Turnaround Plan" The Company incurred a net loss of $291 million in 1997 and $45 million in the first three months of 1998 and expects to incur additional losses in 1998, the extent of which cannot be predicted at this time. As a result of losses at certain of its HMO and insurance subsidiaries in 1997, the Company has had to make capital contributions to certain of its HMO and insurance subsidiaries and expects that additional capital contributions will be required to be made by the Company in 1998. The Company's ability to control net losses depends, to a large extent, on the success of its turnaround plan, which includes improving provider contracts, implementing certain medical management programs and improving operating margins by, among other things, strengthening commercial underwriting, reducing administrative and medical costs and, where appropriate, refining benefit plans and increasing premiums. There can be no assurance that new management will be successfully retained or that the other elements of the turnaround plan will be implemented in the manner described herein, or, if implemented, will be successful or that other efforts by the Company to control net losses will be successful. Moreover, the Company cannot predict the impact of adverse publicity, legal and regulatory proceedings or other future events on the Company's operations and financial results, including ongoing financial losses. There can be no assurance that new management will be successfully retained or that the other elements of the Turnaround Plan will be implemented in the manner described herein, or, if implemented, will be successful or that other efforts by the Company to control net losses will be successful. Implementation of the Company's turnaround plan depends, in part, on its ability to implement measures to reduce its medical and administrative costs below existing levels. The Company currently believes that, it has the ability and intent to reduce certain costs, including those specified in the turnaround plan and others. sec.yahoo.com Mang

To: Premier who wrote (1622)	5/18/1998 11:26:00 AM
From: DRRISK	Read Replies (1) \| Respond to of 2068

Premier, "Oxford as hedge against market meltdown" I think and have stated as such that OXHP is a good hedge against a market meltdown now that the financing is in place, I was a little concerned that they would not get it done in time. I feel that the primary risk to OXHP now could be the political and competitive arenas. The political drums are beating loud on the HMO fronts and what will happen is unclear given the dirth of alternatives. The MSA option still seems to be flat on its ass, unfortunately, so it is probably election year sabre rattling. Cash is king in a meltdown the Mutual Funds are out of it, any money flow panic meets with a major correction that spares nothing. The problem is when. Will daytrade till then. I am surprised that OXHP did not take out the 19 1/2 resistence with the financing. Still IMHO a great longterm play. I agree with almost everything you say. :) DrRisk good luck