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August 01, 2002 at 08:00 PM
NU Online News Service, Aug. 1, 5:33 p.m. – Oxford Health Plans Inc., Trumbull, Conn., is reporting $53 million in net income for the second quarter on $1.2 billion in revenue, compared with $75 million in net income on $1.2 billion in revenue for the second quarter of 2001.
Net results for the latest quarter include a $7.7 million charge to cover the cost of payments Oxford will be making to get out of a computer services outsourcing arrangement, along with $7.7 million in a write-off of the value of computer systems used in connection with the outsourcing arrangement.
Oxford, like PacifiCare Health Systems Inc., Cypress, Calif., is also writing off the value of some of its investment in MedUnite Inc., San Diego, a managed care industry consortium that is trying to develop electronic communications systems that will link physicians with health insurance carriers.
A spokeswoman for MedUnite said the consortium is moving ahead with efforts to introduce its communications services and suggested the write-offs might reflect a new, more conservative approach to accounting for investments.
