February 19, 2003

Deal to create giant new Russian oil company created from Tyumen Oil, Sidanco and Onaco, with BP, minority owner of Sidanco, investing billions to buy half new company got off to rocky start; BP would not specify how many billions it planned to spend; BP executives led by Rodney Chase came to Russia last fall with figure, but it was not to Russians' liking; Mikhail M Fridman, leading figure among investors negotiating with BP, recalls that he tried to be noncommittal but was also holding out for better offer; BP agreed last week after months of wrangling to pay $6.8 billion in cash and stock; would choose new company's top executives, with Fridman's Alfa Group and his partners--Leonard Blavatnik, Russian-born American head of Access Industries, and Victor Vekselberg of Renova Group--holding half-interest but ceding senior management positions; deal puts foreign company in control of major producer in Russia's energy heartland for first time; photo (M)

Swiss team Alinghi could sweep America's Cup five-of-nine race; is already ahead of team New Zealand, three races to none (M)

William Grimes reviews Howard Johnson's restaurant in Times Square; visit is prompted by rumor that restaurant is set to close, but company insists its license agreement requires long-term notification and it has not received one; photos (M)

Some for-profit managed care companies are running state programs for five million low-income people in Medicaid plans; companies involved in managed care are thriving despite Medicaid budget cuts in many states, and some of nation's biggest private health insurers are expanding their Medicaid operations; UnitedHealth Group has added 375,000 Medicaid members in last year and Wellpoint Health Networks has added more than 600,000 in last three years; companies, which receive set monthly payment for each Medicaid member, sign up most common types of Medicaid recipients: children with relatively few health care needs and women that they try to guide through uncomplicated low-cost pregnancies; some hospitals and doctors say companies profit by denying more claims than most insurers; hospitals in New Jersey say Medicaid companies reject claims for hospital stays up to three times as often as other managed care plans; patient advocates say Medicaid companies can be slow to approve expensive treatments for people with serious medical problems; Medicaid experts say another concern is whether some plans provide enough help for low-income people who need it; chart; photos (M)

Summary of major articles on inside pages