Kaiser Foundation Hospitals and Health Plan Report Second Quarter 2011 Financial Results

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Aug 05, 2011, 03:51 ET

OAKLAND, Calif., Aug. 5, 2011 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined operating revenue of $11.9 billion for the quarter ending June 30, 2011, compared to $11.0 billion in the same period in 2010. Operating income was $390 million in the second quarter of 2011, compared to $313 million in the same quarter last year. Net non-operating income was $273 million in the second quarter of 2011, compared to $91 million in the same quarter last year. As a result, net income for the second quarter was $663 million versus net income of $404 million in the same period last year. These are the combined operating results for Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries.

Kaiser Permanente membership has grown by approximately 208,000 members since December 31, 2010, totaling more than 8.8 million members as of June 30, 2011.

Capital spending in the second quarter of 2011 was $735 million, versus $576 million in the same quarter of last year.

For the six months ending June 30, 2011, total operating revenue was $23.9 billion, compared to $22.0 billion for the same period in 2010. Year-to-date operating income was $1.0 billion, compared to $794 million for the same period in 2010. Net non-operating income was $564 million in the first six months of the year, compared to $316 million in the same period last year. Year-to-date net income was approximately $1.6 billion, compared to $1.1 billion for the same period in 2010.

Capital spending for the first six months of 2011 was approximately $1.4 billion, compared to $1.0 billion in the same period last year. Our capital investments allowed us to open 13 new and replacement hospitals and 86 medical office buildings in California over the last five years.

"Our year-to-date operating margin of 4.3 percent was in line with our financial plan," said Executive Vice President and Chief Financial Officer Kathy Lancaster. "Our operating results, coupled with a sound investment strategy, enable us to reinvest in health care facilities, technology and programs that are essential in continuing to meet the needs of our members, patients and the communities we serve."

"We continue to invest in people, technology and our infrastructure to broaden and improve our members' and patients' access to high-quality, affordable health care," said George Halvorson, chairman and chief executive officer. "In addition, we continue to enhance our ability to provide members with health tools and online technologies to learn about health education, communicate with their physicians, check lab results, refill their prescriptions, and more through kp.org."

Kaiser Permanente continues its leadership in providing new and innovative ways to improve care and the total health of its members and patients. All Kaiser Permanente members can access My Health Manager, Kaiser Permanente's personal health record, to manage their personal health information online. Currently, kp.org serves over 100 million visitors each year. Year-to-date in 2011, members have securely viewed 34.8 million laboratory results, exchanged 6.2 million emails with their Kaiser Permanente caregivers and refilled 4.6 million prescriptions online.

"We have made health care more accessible to our members and the communities we serve through the strategic placement of hospitals and medical office buildings," Halvorson added. "We are investing heavily in our communities with 10 hospitals and dozens of medical office buildings under construction. We are strengthening the care delivery infrastructure and upgrading the job base in multiple communities."

As not-for-profit charitable organizations, KFH/HP devote their resources to improve the health of our members and the communities we serve. In light of ongoing economic challenges, in 2010 we increased our investment in community benefit to $1.8 billion. In the first six months of 2011, KFH/HP funded 580 grants and donations nationwide. KFH/HP community benefit investment supports a wide range of KFH/HP and safety net provider programs that provide care for low-income individuals and underserved communities. The organizations also support community-based health partnerships, conduct research and train health care workers. In the second quarter of 2011, KFH/HP continued to support a broad and growing range of programs to serve the needs of our 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 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 serve over 8.8 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