FPA Seeks to Reassure Investors About Oxford

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. FPA organizes and manages primary-care physician networks to contract with HMOs such as Oxford to provide medical services. Out of 1.2 million people covered by FPA, about 95,000 Oxford enrollees are treated by FPA’s Health Partners unit. Oxford Health shares fell 15%, or $2.94, to $17.13, in Nasdaq trading after the company said New York regulators pushed it to add $164 million to its medical claims reserve, which will lead to a fourth-quarter loss of at least $120 million.