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

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Nov 09, 2012, 03:14 ET

OAKLAND, Calif., Nov. 9, 2012 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $12.7 billion for the quarter ending September 30, 2012, compared to $11.9 billion in the same period in 2011. Operating income was $561 million in the third quarter of 2012, compared to $320 million in the same quarter last year. Net non-operating income in the third quarter of 2012 was $242 million, compared to a net non-operating loss of $365 million in the same quarter last year. As a result, net income in the third quarter was $803 million, versus a net loss of $45 million in the same quarter last year. Capital spending in the third quarter of 2012 was $842 million, versus $861 million in the same quarter of last year.

Kaiser Permanente membership has grown by approximately 95,000 members since December 31, 2011. As of September 30, 2012, Kaiser Permanente has a total of approximately 9 million members.

For the nine months ending September 30, 2012, total operating revenue was $38.0 billion, compared to $35.8 billion for the same period in 2011. Year-to-date operating income was $1.5 billion, compared to $1.3 billion for the same period in 2011. Net non-operating income was $595 million in the first nine months of the year, compared to $199 million in the same period last year. Year-to-date net income was $2.1 billion, compared to $1.5 billion for the same period in 2011. Capital spending for the first nine months of 2012 was $2.5 billion, compared to $2.2 billion in the same period last year.

"Our capital investments are an important component of meeting our commitment to our members and the communities we serve," said Chief Financial Officer and Executive Vice President Kathy Lancaster. "Our financial performance allows us to continue to support ongoing, needed investments in the organization's infrastructure to drive both quality and affordability, including health technology, mobile applications, seismic upgrades, new clinics and hospitals, such as the Anaheim hospital which was opened this quarter."

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 4.1 million members who are registered online. Year-to-date in 2012, members have securely viewed 24.7 million laboratory results, exchanged 10.1 million emails with their Kaiser Permanente caregivers and refilled 8.6 million prescriptions online.

"We are on the path of continuous improvement," said Kaiser Permanente Chairman and Chief Executive Officer George Halvorson. "Recent five-star top Medicare ratings for seven of our eight regions by the federal government are a testament to this. In addition, we received No. 1 quality and service rankings for every one of our commercial plans and all eight Kaiser Permanente regions ranked in the top 10 percent of the 474 plans that were ranked by the National Committee on Quality Assurance. We continue to show high levels of performance on both service and quality."

Consistent with their not-for-profit mission, KFH/HP devote their resources to improve the health of their members and the communities they serve. In the first nine months of 2012, KFH/HP funded 619 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. During 2012, KFH/HP continues to support a broad and growing range of programs to serve the needs of their communities.

The board of directors of KFH/HP recently named Bernard J. Tyson the next chairman and chief executive officer of the organization. Tyson will succeed current chairman and CEO George Halvorson, who has served in the role since 2002 and recently announced that he will retire at the end of 2013.

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 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:
510-301-0522, [email protected]

SOURCE Kaiser Permanente