Kaiser Foundation Hospitals and Health Plan Report Second Quarter 2012 Financial Results

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Aug 10, 2012, 03:00 ET

OAKLAND, Calif., Aug. 10, 2012 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined operating revenue of $12.6 billion for the quarter ended June 30, 2012, compared to $11.9 billion in the same period in 2011. Operating income was $424 million in the second quarter of 2012, compared to $390 million in the same quarter last year. Net non-operating income was $90 million in the second quarter of 2012, compared to $273 million in the same quarter last year. As a result, net income for the second quarter was $514 million versus net income of $663 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 87,000 members since December 31, 2011, totaling more than 9 million members as of June 30, 2012.

Capital spending in the second quarter of 2012 was $752 million, versus $735 million in the same quarter of last year.

For the six months ended June 30, 2012, total operating revenue was $25.3 billion, compared to $23.9 billion for the same period in 2011. Year-to-date operating income was $931 million, compared to $1.0 billion for the same period in 2011. Net non-operating income was $353 million in the first six months of the year, compared to $564 million in the same period last year. Year-to-date net income was approximately $1.3 billion, compared to $1.6 billion for the same period in 2011.

Capital spending for the first six months of 2012 was approximately $1.6 billion, compared to $1.4 billion in the same period last year. Our capital investments have allowed us to open 13 new and replacement hospitals and 75 medical office buildings over the last five years.

"We are pleased that our financial performance allows us to continue to make the appropriate investments in facilities and technology for our members and the communities we serve," said Chief Financial Officer and Executive Vice President Kathy Lancaster. "Our capital investments include completing our seismic hospital rebuilds, expanding access and enhancing our technology to better serve our members."

"The national report on hospital safety, issued by the Leapfrog Group, recently recognized Kaiser Permanente for providing outstanding medical care and service," said Chairman and Chief Executive Officer George Halvorson. "Nearly all Kaiser Permanente hospitals included in the survey received an A rating – the highest rating given – and none was rated lower than a B. More than 2,600 hospitals were reviewed in the study. We continue to demonstrate high levels of performance in areas that are important to our members and our patients."

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 4 million members who are registered online. Year-to-date in 2012, members have securely viewed 37.1 million laboratory results, exchanged 6.8 million emails with their Kaiser Permanente caregivers and refilled 5.6 million prescriptions online.

As not-for-profit charitable organizations, KFH/HP devote their resources to improve the health of our members and the communities we serve. In the first six months of 2012, KFH/HP funded 559 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 2012, 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 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 innovation, clinical research, health education and the support of community health. For more information, go to: www.kp.org/newscenter.

For more information, contact:
510-271-2818 [email protected]

SOURCE Kaiser Permanente