Kaiser Foundation Hospitals and Health Plan Report Fiscal Year 2010 and Fourth Quarter Financial Results

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Feb 11, 2011, 04:00 ET

OAKLAND, Calif., Feb. 11, 2011 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their subsidiaries (KFH/HP) reported today that combined total operating revenue for 2010 was $44.2 billion, compared to $42.1 billion in 2009. Operating income for 2010 was $1.2 billion, equal to 2.7 percent of revenue, compared to $1.6 billion, equal to 3.8 percent of revenue, in 2009. Net non-operating income was $789 million in 2010, compared to $524 million in 2009. As a result, net income for 2010 was $2.0 billion, versus $2.1 billion in the prior year.

Combined total operating revenue for the quarter ending Dec. 31, 2010, was $11.1 billion, compared to $10.6 billion in the same period in 2009. Operating income was $42 million in the fourth quarter of 2010, compared to $214 million in the same quarter of the prior year. Net non-operating income was $205 million in the fourth quarter of 2010, compared to a net non-operating income of $276 million in the same quarter of 2009. As a result, net income for the fourth quarter was $247 million, versus $490 million in the same period of 2009. Fourth quarter results typically are lower than other quarters due to timing of revenue and expense trends.

Capital spending for 2010 was approximately $2.9 billion, compared to $2.6 billion in 2009. Capital spending in the fourth quarter of 2010 was nearly $1.2 billion, compared to approximately $900 million in the same quarter in 2009.

Total membership increased by approximately 99,000 members over the past year. As of Dec. 31, 2010, membership totaled 8.7 million members.

"Improvement in financial markets made a contribution to our overall net income, enabling us to partially recoup the investment losses sustained in 2008," said Kathy Lancaster, executive vice president and chief financial officer. "We are pleased that our financial performance supports our continued investment in technology and our facilities, which allows us to provide affordable, high-quality health care and services for our members."

KFH/HP 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 community-based health partnerships, conduct research, train health care workers, and expand access to health care within the safety net. In 2010, KFH/HP provided approximately $1.8 billion, 4.1 percent of its operating revenue, in support to community benefit programs and services. Given the recession's impact on the economically vulnerable, KFH/HP made a concerted effort to expand charitable care and coverage programs for those we serve through the community engagement and philanthropic efforts of its national community benefit program.

"Kaiser Permanente is committed to our mission of providing high-quality, affordable health care to our members and the communities we serve," said chairman and chief executive officer George Halvorson. "Our investments in people and resources have made it possible for us to maintain our leadership in health care research and connectivity; play a role in improving environmental health; and, most importantly, deliver the best possible care to our members and patients."

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 vary significantly 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 economic conditions of the various markets the organization serves.

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 8.7 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