Managed Care

 

Is Oxford for Sale? Wall Street Mulls It Over While the HMO Tries To Shape Up Internally

MANAGED CARE March 1998. © MediMedia USA
News and Commentary

Is Oxford for Sale? Wall Street Mulls It Over While the HMO Tries To Shape Up Internally

MANAGED CARE March 1998. ©1998 Stezzi Communications

Buy low, goes the old advice about stocks. And as low as Oxford Health Plans' stock has gone in recent months, the Connecticut-based HMO might look like a pretty good takeover target.But to Aetna? The same company that has had difficulty digesting its acquisition of U.S. Healthcare?

Neither company would comment on Wall Street buzz that Aetna U.S. Healthcare is sizing up Oxford for possible acquisition. Analysts are divided about whether a merger would work. Such a move might make strategic sense because the two serve overlapping markets, particularly the New York metropolitan region. On the other hand, they say, Oxford's payment and legal problems are so deep, Aetna U.S. Healthcare might wind up inheriting a mess that wouldn't be attractive to anyone — even at the bargain price Oxford could fetch.

While Wall Street pondered the possibilities, Oxford quietly continued to deal with its financial problems. Oxford asked the New York State insurance department for permission to raise premiums for individual HMO and point-of-service enrollees by at least 50 percent. For members who do not receive coverage through employers, that could translate into as much as a $100-a-month cost hike. The department has until May to respond to Oxford's request.

Meetings

Private Health Insurance Exchanges Conference Washington, D.C. October 7–8, 2014
National Healthcare Facility Management Summit Palm Beach, FL October 16–17, 2014
National Healthcare CFO Summit Las Vegas, NV October 19–21, 2014
National Healthcare CXO Summit Las Vegas, NV October 19–21, 2014
Innovative Member Engagement Operations For Health Plans Las Vegas, NV October 20–21, 2014
4th Partnering With ACOs Summit Los Angeles, CA October 27–28, 2014
2014 Annual HEDIS® and Star Ratings Symposium Nashville, TN November 3–4, 2014
PCMH & Shared Savings ACO Leadership Summit Nashville, TN November 3–4, 2014
World Orphan Drug Congress Europe 2014 Brussels, Belgium November 12–14, 2014
Medicare Risk Adjustment, Revenue Management, & Star Ratings Fort Lauderdale, FL November 12–14, 2014
Healthcare Chief Medical Officer Forum Alexandria, VA November 13–14, 2014
Home Care Leadership Summit Atlanta, GA November 17–18, 2014