A $60 million administrative services deal between Oscar Health and Health First Health Plans has been canceled, effective Jan. 1.
Oscar reported in an Aug. 30 regulatory filing that Rockledge, Fla.-based Health First, an integrated payer-provider, "has indicated that it intends to terminate" the agreement for Oscar to provide Health First Medicare Advantage and individual members access to its technology platform and tools.
The partnership officially began Jan. 1, 2022, and was serviced by subsidiary +Oscar, which provided some administrative functions and services. Health First was responsible for care management, network performance management and physician credentialing.
The termination comes after Oscar CEO Mario Schlosser said Aug. 11 the company would be pausing all external deals around +Oscar for the next 18 months because of challenges with integrating Health First's systems.
Revenues generated from the Health First agreement were expected to be $55 million to $60 million. Oscar said it does not expect the termination to affect its financial results for this year.