Operational Excellence

August 3, 2007

Kaiser Foundation Health Plan and Hospitals Report Positive Second Quarter 2007 Financial Results

Kaiser Foundation Health Plan and Hospitals reported total revenue of $9.4 billion in the quarter ended June 30, 2007, compared to $8.5 billion in the same period last year.

Cost containment efforts throughout the organization were cited as a significant reason for the increased financial performance.

Kaiser Foundation Health Plan and Hospitals invests its earnings in programs and initiatives that broaden access to health care, meet seismic requirements, and strengthen the benefits provided to Kaiser Permanente's 8.7 million members nationwide, and the communities Kaiser Permanente serves. For example, revenues fund numerous community benefit programs that provide health care coverage for uninsured families, community-based health partnerships, and research and collaboration with community health organizations.

Kaiser Permanente will open (number to come) new medical centers and medical office buildings in 2007. For example, Kaiser Permanente will open a new Santa Clara (Calif.) Medical Center this month to serve more than 300,000 members in the San Jose metropolitan area, the second largest in California Revenues allow Kaiser Permanente to build new facilities and modernize existing facilities to better serve members and place services closer to growing populations in the communities Kaiser Permanente serves.

Kaiser Permanente also continues to invest in technology to improve quality, service, and patient safety. KP HealthConnect™, the largest civilian electronic health record project in the United States, allows more than 6 million Kaiser Permanente members today to routinely be treated with an electronic chart in an outpatient setting. More than 8.5 million members can access parts of their medical record and manage their health online.

For more details, read this news release about Kaiser Foundation Health Plan and Hospitals' financial results for the second quarter of 2007.