Kaiser Foundation Health Plan and Hospitals Report Third Quarter and Year-to-Date 2015 Financial Results
Leading non-profit health plan reports continued growth in 2015 with solid operating performance in Q3 and year-to-date
Leading non-profit health plan reports continued growth in 2015 with solid operating performance in Q3 and year-to-date
OAKLAND, Calif., Nov. 6, 2015 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) today reported combined total operating revenue of $15.3 billion for the quarter ending September 30, 2015, compared to $14.3 billion in the same period in 2014. Operating income was $363 million in the third quarter of 2015 compared to $768 million in the same quarter last year. Capital spending in the third quarter of 2015 was $583 million, compared to $627 million in the same quarter in 2014.
Volatility in the financial markets, and the timing of market fluctuations at the quarter's end resulted in a net non-operating loss of $478 million for the third quarter of 2015 versus net non-operating income of $229 million for the same quarter last year. As a result, KFHP/H reported a net loss of $115 million for the third quarter of 2015 versus net income of $997 million for the same quarter last year.
KFHP/H's operating income remains steady. For the nine months that ended September 30, 2015, total operating revenue grew to $45.6 billion, compared to $42.2 billion for the same period in 2014. Year-to-date operating income was $1.9 billion compared to $2.2 billion in the same period last year.
"Thanks to our consistently strong operating income in 2015, our performance is on track for the year," said Kathy Lancaster, executive vice president and chief financial officer. "We had an extraordinary year in 2014, so we expected some fluctuations this year and were well prepared for them. We are proud that our cost structure improvements are firmly in place to help insulate our members' rates from external volatility."
One of the factors influencing operating income is Kaiser Permanente's commitment to deliver more affordable customer and member rates. These favorable rates have contributed to growth of nearly 40,000 new members this quarter, across individual, group commercial, Medicare and Medicaid membership. Membership now totals approximately 10.2 million members.
Net non-operating income was $71 million in the first nine months of this year, compared to $901 million over the same period last year. This year-over-year difference is largely due to third quarter 2015 financial market volatility. Year-to-date net income was $1.9 billion, compared to $3.1 billion for the same period in 2014.
Year-to-date capital spending was $1.9 billion through the third quarter of 2015, compared to $2.1 billion in the same period last year. KFHP/H's capital spending reflects continued investments in upgrading technology and facilities to deliver high-quality care and service to members, including the recent completion of a Radiation Oncology Therapy Center at Kaiser Permanente's Anaheim (California) Medical Center Campus.
"We continue to focus on maximizing affordability, quality and service," said Chairman and CEO Bernard J. Tyson. "Our year-to-date positive operating margin of four percent represents solid performance for the year thus far."
Consistent with its not-for-profit mission, KFHP/H devotes resources to improve the health of the communities it serves. KFHP/H 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 July 2015 Kaiser Permanente, the official health partner for the Special Olympics World Games, demonstrated its commitment to creating healthier communities by supporting 6,500 athletes throughout the Games. More than 650 Kaiser Permanente physicians and 160 employees provided care and support to the participating athletes.
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 media 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 more than 10 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.
Contact:
Marc Brown 510-271-6328
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SOURCE Kaiser Permanente
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