Kaiser Foundation Hospitals and Health Plan Report Second Quarter 2013 Financial Results

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Aug 09, 2013, 03:00 ET

OAKLAND, Calif., Aug. 9, 2013 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $13.4 billion for the quarter ending June 30, 2013, compared to $12.6 billion in the same period in 2012. Operating income was $613 million in the second quarter of 2013, compared to $424 million in the same quarter last year. Net non-operating income was $143 million in the second quarter of 2013, compared to a net non-operating income of $90 million in the same quarter of 2012. As a result, net income for the second quarter was $756 million, versus $514 million in the same period of 2012.

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For the six months ended June 30, 2013, total operating revenue was $26.7 billion, compared to $25.3 billion for the same period in 2012. Year-to-date operating income was $1.2 billion, compared to $931 million for the same period in 2012. Net non-operating income was $363 million in the first six months of this year, compared to $353 million in the same period last year. Year-to-date net income was $1.5 billion, compared to $1.3 billion for the same period in 2012. First half of the year results are frequently higher than second half results, due to timing of revenues and expenses.

Capital spending in the second quarter of 2013 was $769 million, compared to $752 million in the same quarter in 2012.

For the first six months of 2013, capital spending was $1.5 billion, compared to $1.6 billion in the same period last year. KFH/HP's capital spending reflects our continued investments in technology and facilities to support our members' needs and deliver high-quality care. This includes the cost of rebuilding four hospitals to comply with California earthquake standards.

Kaiser Permanente membership has grown by 78,066 members since December 31, 2012, totaling more than 9.1 million members as of June 30, 2013.

"Results in the first six months of the year are often stronger due in part to operating revenues being relatively steady while costs rise throughout the year," said Kathy Lancaster, executive vice president and chief financial officer. "Our operating results, coupled with a sound investment strategy, allow us to continue to make investments in care delivery programs, facilities and technology to support our members, patients and the communities we serve."

Kaiser Permanente continues its leadership in providing new and innovative ways to improve care and the total health of its members and patients. 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 4.3 million members who are registered online. During Q2 2013, members securely viewed 8.9 million laboratory results, exchanged 3.7 million emails with their Kaiser Permanente caregivers and refilled 3.7 million prescriptions online.

"Our performance for the first half of the year allows us to continue to make high-quality care affordable and to create healthy communities," said Bernard J. Tyson, chief executive officer. "We have made tremendous progress on advancing quality, and we are focused on impacting affordability for our members and for America."

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 2013, KFH/HP funded approximately 950 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 2013, 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 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 more than 9.1 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:
510-267-5354, [email protected]

SOURCE Kaiser Permanente