Oxford Reports Loss, Names New CEO

Oxford Health Plans Inc. reported a worse-than-expected loss of $285 million for the fourth quarter and said it is realigning its top management after having secured a $710-million rescue package. The troubled health-maintenance organization said investment firm Texas Pacific Group, based in Fort Worth and San Francisco, agreed to invest $350 million in Norwalk, Conn.-based Oxford and plans to raise another $350 million through a debt offering. Oxford named Norman C. Payson, former chief executive of Healthsource Inc., as its new chief executive and said founder and Chairman Stephen F. Wiggins will no longer be active in the company, although he will remain a director. Payson said it was too early to say if Oxford will have to lay off employees. Oxford’s loss for the three months ended Dec. 31 was $3.58 a share. That compares with a net income of $32 million, or 42 cents a share, for the period a year ago. Oxford’s stock, which has fallen drastically since last summer, lost $1.50 to close at $18.44 on Nasdaq.