Kaiser Foundation Hospitals and Health Plan Report Fiscal Year 2011 and Fourth Quarter Financial Results

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Feb 10, 2012, 03:20 ET

OAKLAND, Calif., Feb. 10, 2012 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their subsidiaries (KFH/HP) reported today that combined total operating revenue for 2011 was $47.9 billion, compared to $44.2 billion in 2010. Operating income for 2011 was $1.6 billion, equal to 3.3 percent of operating revenue, compared to $1.2 billion, equal to 2.7 percent of operating revenue, in 2010. Net non-operating income was $426 million in 2011, compared to $789 million in 2010. As a result, net income for 2011 was $2.0 billion, consistent with that of the prior year.

Capital spending in the communities served by Kaiser Permanente for 2011 increased to $3.2 billion, compared to $2.9 billion in 2010. Spending on new health care facilities made KFH/HP one of the major providers of construction jobs in California. Major hospital construction projects are underway in Anaheim, Fontana, Los Angeles, Oakland, Redwood City, and San Leandro.

Combined total operating revenue for the quarter ending Dec. 31, 2011, was $12.1 billion, compared to $11.1 billion in the same period in 2010. Operating income was $247 million in the fourth quarter of 2011, compared to $42 million in the same quarter of the prior year. Net non-operating income was $227 million in the fourth quarter of 2011, compared to a net non-operating income of $205 million in the same quarter of 2010. As a result, net income for the fourth quarter was $474 million, versus $247 million for the same period in 2010. Capital spending in the fourth quarter of 2011 was $1.0 billion, compared to nearly $1.2 billion in the same quarter in 2010.

Total membership increased by approximately 249,000 members over the past year. As of Dec. 31, 2011, membership totaled more than 8.9 million members.

"Our year-end results are in line with our historical financial performance and support our continuing investments in improving access, affordability and high-quality health care," said Kathy Lancaster, chief financial officer and executive vice president. "By strategically investing in our infrastructure, we have been able to build facilities and use technology in ways that allow us to deliver the right care, in the right place, at the right time."

"Kaiser Permanente's mission to provide high-quality, affordable health care leads us to find new and innovative ways to deliver total health," said George Halvorson, chairman and chief executive officer. "For five years, our members have had the ability to email their doctors from their home or laptop computers, and now – with the new smart phone connectivity tools – our members can more easily check lab results, refill prescriptions and communicate with their doctors' office from wherever they are via their mobile device. Lab results can go directly from the laboratory to the patient's smart phone – often within hours of the tests being run. This is the future of health care."

In 2011, KFH/HP provided approximately $1.8 billion, 3.8 percent of its operating revenue, in support to community benefit programs and services. 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.

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, 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 serve approximately 8.9 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.

For more information, contact:
510-625-5592, [email protected]

SOURCE Kaiser Permanente