Kaiser Foundation Health Plan and Hospitals Report Second Quarter 2016 Financial Results

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Aug 05, 2016, 04:01 ET

OAKLAND, Calif., Aug. 5, 2016 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) today reported a combined total operating revenue of $15.8 billion for the quarter ending June 30, 2016, compared to $15.3 billion in the same period in 2015. Operating income was $491 million in the second quarter of 2016, compared to $760 million in the same quarter last year. KFHP/H reported net non-operating income of $216 million in the second quarter of 2016, compared to $248 million in the same quarter of 2015. As a result, net income for the second quarter was $707 million, versus $1.0 billion in the same period of 2015.

"Kaiser Permanente remains committed to delivering affordability and high-quality care for our 10.6 million members across the country," said Chairman and CEO Bernard J. Tyson. "Despite unprecedented change in the health care industry, our performance remains strong and steady."

For the six months ending June 30, 2016, total operating revenue was $32.1 billion, compared to $30.3 billion for the same period in 2015. Operating income for the first half of the year was $1.2 billion, compared to $1.5 billion for the same period in 2015. Net non-operating income was $19 million in the first six months of this year, compared to $549 million in the same period last year. Year-to-date net income was $1.2 billion, compared to $2.1 billion for the same period in 2015.

Year-to-date capital spending was $1.28 billion through the second quarter of 2016, compared to $1.3 billion in the same period last year. KFHP/H's capital spending reflects continued investments in facilities and technology to support care delivery. In the second quarter of the year, Kaiser Permanente opened four new medical office buildings. This brings the number of medical office buildings in the Kaiser Permanente system to 630, along with 38 hospitals. These investments in facilities are to ensure Kaiser Permanente can meet the needs of our growing membership and communities. Additional capital expenditures are going toward supporting technology to advance patient care – both in person and virtually – as well as our digital capabilities to provide patients even greater convenience and choice in accessing care and services.

Kaiser Permanente membership has grown by approximately 362,000 members since December 31, 2015, totaling approximately 10.6 million members as of June 30, 2016. "Kaiser Permanente's membership and financial stability are important, as earnings are reinvested to support our care delivery system to improve patient outcomes and increase affordability," said Kathy Lancaster, executive vice president and chief financial officer.

Consistent with their not-for-profit mission, KFHP/H also devote resources to improve the health of the communities they serve. KFHP/H's community benefit investments provide care for low-income individuals and underserved communities, reinforce community-based health partnerships, support research and train health care workers. In the second quarter of 2016, KFHP/H continued to invest in a range of programs to serve the needs of local communities.

Except for historical information contained herein, the matters discussed in this media release are forward-looking statements that involve risks and uncertainties. Actual results may differ materially based on a number of factors including, but not limited to: the impact of competitive products and pricing; government regulations; changing membership requirements and the change in business and economic conditions. Forward-looking statements are based on information as of the date of this press release, and we assume no obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.

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, Kaiser Permanente has a mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We currently serve 10.6 million members in eight 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: kp.org/share.

For more information, contact:
Diana Yee: 510-271-6671
[email protected]

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SOURCE Kaiser Permanente