OXFORD HEALTH PLANS
Oxford Health Plans, one of the largest HMOs in the US with about 1.9 million members, faced a crisis prompted by incomplete reporting of financial and operational problems. Its very existence was threatened as its stock plummeted due to an increased medical loss ratio and decreased reserves as its payments to providers escalated. A rapid response crisis team and site were developed to respond with complete disclosure designed to rebuild investor confidence and regain the trust of providers and member constituencies. Media training, satellite conferences, analyst tours and media briefings with key business reporters and journalists conveyed the company’s response including the resignation of management and the introduction of the new investor syndicate that would return Oxford to health and its position as a major player in the HMO industry over a 12-month period.