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

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Aug 06, 2010, 04:00 ET

OAKLAND, Calif., Aug. 6 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $11.0 billion for the quarter ended June 30, 2010, compared to $10.5 billion in the same period in 2009. Operating income was $313 million in the second quarter of 2010, compared to $411 million in the same quarter last year. Net non-operating income was $91 million in the second quarter of 2010, compared to $209 million in the same quarter last year. As a result, net income for the second quarter was $404 million versus net income of $620 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.

Total Kaiser Permanente membership is 8.6 million as of June 30, 2010, growing by approximately 47,000 members since December 31, 2009. Capital spending in the second quarter of 2010 was $576 million versus $558 million in the same quarter last year.

For the six months ending June 30, 2010, total operating revenue was $22.0 billion, compared to $21.1 billion in the same period last year. Year-to-date operating income was $794 million compared to $1.0 billion for the same period in 2009. Net non-operating income was $316 million in the first six months of the year, compared to $15 million in the same period last year. Capital spending for the first half of 2010 was approximately $1.0 billion compared to $1.1 billion for the same period last year. Year-to-date net income was approximately $1.1 billion consistent with the same period in 2009.

"We are pleased by our overall year-to-date net income, which is consistent with our performance for the same period last year," said Kathy Lancaster, executive vice president and chief financial officer. "Through our financial performance we are able to support our capital expenditures as well as our ongoing efforts to deliver high-quality, affordable health care."

Kaiser Permanente has invested in developing the world's largest private electronic health record system, Kaiser Permanente HealthConnect®, which is now in use across Kaiser Permanente. Kaiser Permanente care teams routinely document patient care with an electronic chart in both inpatient and outpatient settings. In addition, 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. For the first six months of 2010, members have exchanged 5.3 million emails with their Kaiser Permanente doctors and refilled 4 million prescriptions online. In addition, 12.7 million lab results have been delivered online in the first six months of the year.

"Our investment in KP HealthConnect positions us well to address health care reform," said George Halvorson, chairman and chief executive officer. "The benefits of technology-enabled health care are significant, and include avoidance of medication errors, enhanced clinical decision making, increased coordination across care teams, and added support for caregivers, and the development of new ways to engage members and patients in their care, including online communications."

As not-for-profit organizations, KFH/HP devote 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 in KFH/HP and with safety net providers. The organizations also support community-based health partnerships, conduct research, and train health care workers. In the second 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 six months of 2010, KFH/HP funded more than 700 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