Kaiser Foundation Health Plan and Hospitals Report First Quarter 2010 Financial Results

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May 07, 2010, 04:24 ET

OAKLAND, Calif., May 7 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported today a combined total operating revenue of $11.0 billion for the quarter ended March 31, 2010, compared to $10.6 billion in the same period in 2009. Operating income was $481 million in the first quarter of 2010, compared to $624 million in the same quarter last year. Net non-operating income was $225 million in the first quarter of 2010, compared to a net non-operating loss of $194 million in the same quarter last year. As a result, net income for the first quarter was $706 million, versus net income of $430 million in the same period last year. These represent the combined operating results for Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries.

Total membership increased by approximately 44,000 members, or 0.5 percent, from December 2009. As of March 31, 2010, Kaiser Permanente had approximately 8.6 million members.

Capital spending in the first quarter of 2010 was approximately $458 million versus approximately $558 million the same quarter last year. The decrease in capital spending was due primarily to construction delays associated with weather. During the first quarter of 2010, KFHP/H completed the replacement of the main hospital tower and infrastructure in Vallejo, Calif., opened a new medical office building in Cudahy, Calif., and completed renovations and an expansion to the emergency department at the Oakland, Calif., medical center.

"Our operating income for the quarter was down compared to the same period last year, reflecting the decrease in Medicare Advantage payments combined with increases in outside medical costs. However, we are pleased that the recovery in the financial markets has resulted in positive non-operating income and net income that is aligned with our operating plan and our capital expenditures," said Kathy Lancaster, executive vice president and chief financial officer.

As of the first quarter of 2010, Kaiser Permanente HealthConnect®, the world's largest private electronic health record system, is now available in all 36 Kaiser Permanente hospitals and all 431 medical offices. With KP HealthConnect, all Kaiser Permanente care teams routinely document patient care with an electronic chart in both inpatient and outpatient settings. All 8.6 million Kaiser Permanente members can access My Health Manager, Kaiser Permanente's personal health record, to manage their personal health information securely, online at kp.org. My Health Manager empowers patients by providing critical time-saving features, including online appointment scheduling, prescription refills and the ability to email their doctor. In addition, users have 24/7 online access to lab test results, eligibility and benefits information, and even their children's immunization records.

"We are encouraged by the move toward universal coverage in this country," said George Halvorson, chairman and chief executive officer of Kaiser Permanente. "Kaiser Permanente will make significant investments and collaborate with customers, government and the health care industry to implement and manage the many significant changes included in this historic legislation."

As not-for-profit organizations, KFHP/H devote resources to improve the health of our members and the communities we serve. Our community benefit investment supports a wide range of programs that provide care for low-income individuals; support for community-based health partnerships; conduct research; train health care workers; and expand access to health care for safety net providers to underserved communities. In the first quarter of 2010, KFHP/H continued to support a broad and growing range of programs to serve the needs of our communities, approving more than 250 grants and donation requests. In 2009, we provided nearly $1.7 billion in annual support to community benefit programs and services including grants and donations.

About Kaiser Permanente

Kaiser Permanente is committed to helping shape the future of health care. We are recognized as one of America's leading health care providers and not-for-profit health plans. Founded in 1945, our mission is to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We currently serve 8.6 million members in nine states and the District of Columbia. Care for members and patients is focused on their total health and guided by their personal physicians, specialists, and team of caregivers. Our expert and caring medical teams are empowered and supported by industry-leading technology advances and tools for health promotion, disease prevention, state-of-the art care delivery, and world-class chronic disease management. Kaiser Permanente is dedicated to care innovations, clinical research, health education, and the support of community health. For more information, go to: www.kp.org/newscenter.

SOURCE Kaiser Permanente