Classification of irregular free boundary points for non-divergence type equations with discontinuous coefficients

We provide an integral estimate for a non-divergence (non-variational) form second order elliptic equation $a_{ij}u_{ij}=u^p$, $u\ge 0$, $p\in[0, 1)$, with bounded discontinuous coefficients $a_{ij}$ having small BMO norm. We consider the simplest discontinuity of the form~$x\otimes x|x|^{-2}$ at the origin. As an application we show that the free boundary corresponding to the obstacle problem (i.e. when~$p=0$) cannot be smooth at the points of discontinuity of~$a_{ij}(x)$. To implement our construction, an integral estimate and a scale invariance will provide the homogeneity of the blow-up sequences, which then can be classified using ODE arguments.