Oxford Posts Bigger-Than-Expected Loss

Oxford Health Plans Inc., which warned investors it would post a third-quarter loss due to billing problems, said it lost $78 million during the period--worse than it had forecast. The big health-care provider, based in Norwalk, Conn., said it suffered a net loss of $78.2 million, or 99 cents a share, compared with net income of $26.7 million, or 33 cents a share, a year ago. Another health-care provider--Aetna Inc.--took a $103-million after-tax charge for medical claims reserves that wiped out most of its third-quarter operating earnings, citing higher medical costs. Aetna said operating earnings after the charge was $59.1 million, or 30 cents a share, versus $162.1 million, or 98 cents, without the charge. In 1996, the Hartford, Conn.-based company had operating earnings of $136.9 million, or 81 cents a share, on a pro forma basis. Oxford shocked Wall Street last week with a prediction that it would lose 83 to 88 cents a share because of revenue shortfalls and higher medical costs. Oxford shares fell 69 cents to close at $25.31 on Nasdaq; Aetna shares rose $1.38 to $74.06 on the NYSE.