NU Online News Service, Oct. 29, 2003, 12:23 p.m. EST – Oxford Health Networks Inc., Trumbull, Conn., is reporting gains in third quarter net income because of a special charge it took in the third quarter of 2002.
The managed care company is reporting $111 million in net income for the latest quarter on $1.4 billion in revenue, up from $24 million in net income on $1.3 billion in revenue for the third quarter of 2002.
But the net income figure for the third quarter of 2002 includes a $151 million charge resulting from the settlement of a class-action lawsuit related to computer problems and accounting problems that Oxford suffered in the mid-1990s. If Oxford had not taken the charge, it would have reported $175 million in net income for the third quarter of 2002.
The company ended the third quarter providing or administering medical coverage for 1.6 million people, 3.5% fewer than it was covering a year earlier.
Average premium revenue per insured commercial member increased 11%, to $932.