 |
||
|
|
||
| |||||||||||
The rise of Oxford Health Plans, Inc. Oxford Health Plans started small in the spare bedroom of founder Steve Wiggins's Connecticut home in 1984. By the time 1990 rolled around, the company was the second-most profitable HMO in New York. Particularly important to Oxford's success was the Freedom Plan, allowing customers to choose doctors outside of the network for higher deductibles. With business hopping, Oxford went public in 1991. Having entered the Medicaid/Medicare markets, the company introduced its Liberty Plan in 1993, and in the same year bought SmokEnders. In 1996, Oxford introduced a network of alternative care practitioners offering services in acupuncture and yoga, among others. The fall of Oxford Health Plans, Inc. In October 1997, Oxford Health Plans, Inc. was seemingly on top of its game. It had acquired Florida's 15,000-member Riscorp Health Plans, and the company's stock price hovered at around $80 per share, meaning a market capitalization of over $6 billion and a price/earnings ratio of almost 60. However, the company posted a loss for third quarter 1997, news which burst the Oxford bubble - its stock plunged 62 percent in a single day. Industry observers offered many explanations for what went wrong, but two in particular emerged. First, the company's homegrown billing technology had failed to indicate rising costs or to process payments efficiently. Second, many pointed to the high costs of the Oxford model, in which doctors would get their usual fees and patients could choose their doctors. Will Oxford rise again? In 1998, Oxford seemed prepared to swallow bitter medicine to restore its financial health. To begin with, the company raised $710 million from investors. These included newly-appointed CEO Norman Payson and Texas Pacific Group, an investment firm that in return for a $350 million investment now holds the right to buy 22 percent of the company. Payson cut 17 percent of Oxford's workforce, and has concentrated on raising premiums, reducing doctors' fees, and restricting the once-flexible choices for Oxford subscribers. The news isn't all bad, however. Oxford still claims a customer base of 1.6 million members concentrated largely in New York, New Jersey, and Connecticut. One Robertson Stephens analyst told Forbes: "If you are an Oxford beneficiary, they have 85 percent of the best doctors in the New York metropolitan area. There aren't a lot of better options." The company believes that its attempts to enter the technology age by adding 140 computer enhancements in 1999 has aided the company in increasing its profits. Oxford also hired 1,200 employees in the Tampa Bay area to run call centers aimed at increasing contact between employees and patients. The company still has quite a way to go though since its old computer systems require much human effort, and because it has not yet received the $100 million it advanced to hospitals prior to the 1997 disaster when Oxford lost control of its accounts. Keeping it alive Oxford Health Plans and United Healthcare announced its 1999 agreement to use a single application process to discover the credentials of potential medical providers for their networks. This type of agreement, never before made between major health care providers, will greatly reduce operating costs as well as increase the efficiency of health plans. The company also discontinued its Medicare Advantage plan in counties in New York and New Jersey, effective January 1, 2001, due to rising health care costs. Ridding itself of some of its inprofitable businesses has helped Oxford return to profitability in 1999. Speculation has arisen that Oxford is priming itself for a sale, but Oxford is in full denial.
For such a young company, Oxford's web site, www.oxhp.com, is oddly rather opaque as far as hiring is concerned. While the company recruits on-campus, uses head-hunters, and posts ads in newspapers (particularly Connecticut dailies like the Hartford Courant or New Haven Register), insiders indicate that the company relies heavily on referrals, and it really helps to know someone inside the organization, even in the department where you wish to work. Regarding qualifications, insiders also tell us that for all departments, Oxford prefers individuals with experience in a healthcare setting. For entry level hires, naturally it will be important to be able to fully explain one's interest in working for a managed care company. For marketing positions in particular, our contacts tell us that the company seeks individuals with a "high degree" of software expertise, including desktop publishing, spreadsheets, and database experience. The interview process breaks down into two rounds. Our contacts reveal that the first will generally be with people from the Human Resources department, and "should not be stressful." The company, in the first round, is primarily looking for "a good fit." The second round, conducted by department members (sometimes senior) will focus more on assessing the candidate's interests, why the candidate is interested in the position, and technical skills. For example, for those interested in an analyst position, the interview will likely cover the extent of the candidate's spreadsheet and database experience. While hiring at the company has slacked off, insiders tell us that often several positions at once may open up in a given department. In such case, the candidate may be shopped around to different people to determine which job will be the best fit.
A youthful place...for now According to most of our contacts, Oxford Health Plans offers a young, entrepreneurial atmosphere. "Oxford is a great place to work," says one, "it's casual, young, entrepreneurial." "Oxford," another notes, is a definitely a youth -oriented company...the median age of Oxford employees hovers in the mid to upper twenties." One insider explains that "it is a very performance based environment where you are rewarded for innovation and hard work. The corporate environment is very friendly and relaxed." To back up their claims, many note that the dress code is business casual with Fridays "'dress down' which means you can wear jeans, sneakers, shorts." Oxford in flux: changing culture? However, according to some insiders, given Oxford's tumultuous recent history, clouds may be gathering on the horizon. One contact explains: "It's been a very human place to work, and they have always looked for caring, nice people. This has made for a pleasant work environment. However, with changes in management, I don't know what's happening." The same contact explains further: "[Oxford is a very different place and culture than when I joined. Lots of old-timers (several years makes for an old timer at this young company) are leaving and new management and consultants are coming in. The corporate culture has traditionally been relaxed (business casual, jeans on Friday, laid back) progressive, young and fun. Now it is getting more conservative and formal. There is still a lot of confusion due to the changing of the guard among top management." Oxford in flux: opportunity One insider spins the transition more positively. "Right now Oxford is in a rebuilding stage...so it is a great time to jump in. With all of the changes taking place in upper management, today is the first time in many years that one person can make a great impact within one company." Another remains confident: "Oxford was one of the fastest growing companies over the last few years, and we have had some problems managing that growth (information systes, trying to do too much too fast, etc.). Oxford now has a new senior management team that is dedicated to stabilizing and revitalizing the company." Won't work you to the bone Oxford insiders don't complain about their hours. One notes that "the stress level is at a minimum. We have times when we are on tight deadlines, but it never turns into a very high stress atmosphere." Another reports that "during the summer, my department is allowing us to work 40 hours and take off an afternoon each week so long as we have the department covered." Job satisfaction: the jury's out for some Most of our contacts are quite pleased with their experience at Oxford Health Plans, Inc. "This is a great company to work for," says one. Another explains that "since Oxford is so young in comparison to our competitors, it makes for a great work environment. Still another brightly adds: "Working at Oxford has been VERY exciting and rewarding. I have been with Oxford for about two years and have had the opportunity to take on significant projects that have made a difference for the company and has allowed me to grow professionally." One concludes on a positive note: "This company has wonderful people, a few jerks, and a work hard, play hard attitude. I love it." Not everyone, however, is so smitten. "There is a lot of transition taking place," cautions one. Another warns job seekers: "there are still some wonderful people working here, and it is still a lot different from traditional insurance companies, but I don't know whether I'd recommend joining the company at this point."
Nils Lommerin Human Resources 1-800-889-7658
Managed health care;HMOs;PPOs;Medicare More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
