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

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Nov 04, 2010, 06:33 ET

OAKLAND, Calif., Nov. 4, 2010 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $11.1 billion for the quarter ending September 30, 2010, compared to $10.5 billion in the same period in 2009. Operating income was $366 million in the third quarter of 2010, compared to $336 million in the same quarter last year. Net non-operating income was $268 million in the third quarter of 2010, compared to $233 million in the same quarter last year. As a result, net income for the third quarter was $634 million versus net income of $569 million in the same period last year. These represent the combined operating results for Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries.

Kaiser Permanente membership has grown by approximately 59,000 members since December 31, 2009, totaling 8.6 million total members as of September 30, 2010. Capital spending in the third quarter of 2010 was $672 million, versus $582 million in the same quarter of last year.

For the nine months ending September 30, 2010, total operating revenue was $33.1 billion, compared to $31.6 billion for the same period in 2009. Year-to-date operating income was $1.2 billion, compared to $1.4 billion for the same period in 2009. Net non-operating income was $584 million in the first nine months of the year, compared to $248 million in the same period last year. Year-to-date net income was approximately $1.7 billion, compared to $1.6 billion for the same period in 2009. Capital spending for the first nine months of 2010 was approximately $1.7 billion, which was consistent with the same period last year.

"Our financial performance allows us to continue our efforts to provide high-quality, affordable health care," said Kathy Lancaster, executive vice president and chief financial officer. "We use our positive financial performance to make investments in care delivery programs, facilities and technology supporting our members, patients and the communities we serve."

Kaiser Permanente continues its leadership in providing new and innovative ways to improve the total health of its members and patients. All 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. Year to date in 2010, members have exchanged 8 million e-mails with their Kaiser Permanente doctors and refilled 6.1 million prescriptions online. In addition, 48.8 million lab results have been delivered online in the first nine months of the year.

"Our commitment to continuous learning and performance improvement directly translates to quality improvements and better health for our members and the community at large," said George Halvorson, chairman and chief executive officer. "Most recently, we won the 2010 Care Continuum Alliance Quality Impact Award for 'the greatest impact on health' for our ALL/PHASE Protocol. The ALL/PHASE Protocol includes a program of medications and clinical interventions to reduce heart attacks. The program has been successfully implemented across Kaiser Permanente communities and we are now extending it to patients served by more than 40 safety net organizations."

As not-for-profit charitable organizations, KFH/HP devote their resources to improve the health of our members and the communities we serve. KFH/HP community benefit investment supports a wide range of programs that provide care for low-income individuals and underserved communities, both within KFH/HP and with safety net providers. The organizations also support community-based health partnerships, conduct research and train health care workers. In the third quarter of 2010, KFH/HP continued to support a broad and growing range of programs to serve the needs of our communities. In the first nine months of 2010, KFH/HP funded nearly 800 grants and donations nationwide.

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