Kaiser Foundation Health Plan and Hospitals' Second Quarter Results Enable
Investments in Health Programs and Infrastructure
OAKLAND, Calif., Aug. 4 /PRNewswire/ -- Kaiser Foundation Health Plan,
Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported
total operating revenue of $10.1 billion for the quarter ended June 30, 2008,
compared to $9.4 billion in the same period last year. Operating income in
the second quarter was $499 million, compared to $877 million in the second
quarter of 2007 when a reduction in reserves for professional liability and
worker's compensation contributed to the quarter's results.
Volatility in the financial markets impacted KFHP/H's investment portfolio
in the second quarter, resulting in a net loss of $148 million in
non-operating items versus a net gain of $248 million in the second quarter of
2007. Net income in the second quarter was $351 million versus $1.1 billion
in the same period last year. Total membership remained flat at nearly 8.7
million members in the second quarter of this year.
"Though the difficult economic climate and turbulence in the financial
markets dampened our second quarter results, our strong financial position
enables us to continue making important investments in our integrated health
care delivery system," said Executive Vice President and Chief Financial
Officer Kathy Lancaster. "As we navigate the challenging economic
environment, we are placing even greater emphasis on our ongoing effort to
moderate expense trends and the rate of premium increases for our customers
and members."
Capital spending for the second quarter totaled $628 million, compared to
$627 million in the same quarter of 2007. KFHP/H continued to invest in its
health programs and services, integrated health care system, technology and
facilities to enhance the quality of the care and service it provides. "Our
earnings allow us to support our capital spending program, which is needed to
help us meet the growing and evolving needs of our members," said Chairman and
Chief Executive Officer George Halvorson. "We recently opened a new hospital
in Irvine, California, a hospital tower expansion in Moanalua, Hawaii, and are
now focused on opening additional state-of-the-art facilities in the remainder
of this year and next."
As a not-for-profit organization, KFHP/H also uses its earnings to support
a wide range of community benefit programs, which provide direct health care
coverage for uninsured families and support community-based health
partnerships, and research and collaboration with community health
organizations. A portion of KFHP/H's community benefit activities in the
second quarter included the approval of more than 415 community benefit grants
and donations. In 2007 KFHP/H provided more than $1 billion to support
community benefit programs and services.
A leader in integrating technology in the delivery of health care, KFHP/H
continues to expand its electronic health record project KP HealthConnect(TM).
All Kaiser Permanente members can now securely access their personal health
records online and communicate with their Kaiser Permanente physicians through
My Health Manager on kp.org. This unprecedented access enables members and
their physicians to make the best health care choices with improved quality,
service and safety. "We are making rapid progress in becoming the world
standard for electronic connectivity between members and patients," said
Halvorson. "With two and a quarter million users now accessing My Health
Manager online, I am pleased to say that our teams of physicians, nurses,
caregivers and other health care professionals have passed another milestone
in our goal to transform the way members choose and receive their health care.
We like to point out that with our new electronic patient connectivity, we
achieved millions of patient visits last year without our members expending
one gallon of gas."
About Kaiser Permanente
Kaiser Permanente is America's leading integrated health care delivery
system. Founded in 1945, it is a group practice prepayment program
headquartered in Oakland, California. Kaiser Permanente serves the health care
needs of nearly 8.7 million members in nine states and the District of
Columbia. It encompasses the not-for-profit Kaiser Foundation Health Plan,
Inc., Kaiser Foundation Hospitals and their subsidiaries, and the for-profit
Permanente Medical Groups. Nationwide, Kaiser Permanente includes
approximately 165,000 technical, administrative and clerical employees and
caregivers, and more than 14,000 physicians representing all specialties. The
system's Labor Management Partnership is the largest health care
labor-management partnership in the United States. It governs how workers,
managers, physicians and dentists work together to make Kaiser Permanente the
best place to receive care, and the best place to work. For more Kaiser
Permanente news, visit the KP News Center at: http://www.kp.org/newscenter.
Except for historical information contained herein, the statements in this
release may contain forward-looking statements. Forward-looking statements
include, among other things, statements that refer to plans and expectations
such as future events and future financial performance. Forward-looking
statements involve a number of risks and uncertainties. Actual results may
differ materially from those expressed or implied by the statements herein
based on a number of factors including, but not limited to: the impact of
competitor products and pricing; government regulations; health care
legislation; changing membership requirements; and the change in economic
conditions of the various markets the system serves.
http://www.kaiserpermanente.org
SOURCE Kaiser Permanente
Susannah Patton of Kaiser Permanente, +1-510-271-5826,
Susannah.F.Patton@kp.org
