Press Releases: National
February 28, 2002
A positive financial performance for 2001 prepares Kaiser for Future Challenges
OAKLAND, Calif. – Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals (KFHP/H) and their subsidiaries reported net income of $681 million and operating income of $714 million on revenues of $19.7 billion for the year ended December 31, 2001. These results demonstrate continued improvement over the last few years.
In 2000 KFHP/H reported net income of $584 million and operating income of $562 million on revenues of $17.7 billion.
Membership as of December 31, 2001 was more than 8.2 million, which reflects growth of 122,000 members during the year.
In the fourth quarter, 2001 KFHP/H reported net income of $187 million and operating income of $198 million on operating revenues of $5 billion. By comparison, in the fourth quarter of 2000 KFHP/H posted net income of $105 million and operating income of $111 million on operating revenues of $4.6 billion.
"Throughout 2001, Kaiser Permanente continued its focus on quality while improving its operational performance, and forging a strong financial position for the coming years," said Dale Crandall, president, KFHP/H. "We have made significant progress in many areas, among them quality and safety improvements, financial stability, strategic investments in technology and facilities, and improvements in service and customer satisfaction. Looking ahead, we must make sure that we have sufficient capital to upgrade our existing facilities, build new ones, and continue our investment in new technologies. Finally, the key challenges for everyone in the health care industry will be rapid increases in pharmacy and hospital costs that continue unabated, and the consolidation of strong national competitors in an increasingly volatile marketplace."
Kaiser Permanente's development of a national clinical information system continues and is on schedule. The next planned release of software to Hawaii and Southern California will be in the fall of 2002, and to Colorado in early 2003. This key strategic initiative encompasses electronic medical record keeping, clinical guidelines and is expected to enhance the clinical office visit for patients. In the face of a worldwide nursing shortage, strategies to recruit nurses are underway, particularly in California, as it implements new hospital nurse-to-patient ratios designed to improve the quality of care for patients and improve working conditions for nurses. Also, construction continues on new and replacement hospitals begun last year, as well as on new medical office buildings needed to accommodate continuing membership growth.
The excellent quality of medical care at Kaiser Permanente is regularly recognized throughout the health care industry. In its fifth California Hospital Outcomes Study, the California Office of Statewide Health Planning and Development awarded 13 Kaiser Permanente hospitals a "star" for their excellent care. Regarded as a consumer report card on where the best care is given, the report provides comparative information on the performance of hospitals in caring for patients with heart attacks (acute myocardial infarction or AMI). This indicates that hospitals with a "star" rating offer patients a statistically significantly better than expected chance of surviving a heart attack. The American Medical Group Association selected The Southeast Permanente Medical Group in the Georgia Region as a recipient of its 2002 Medical Group Leadership Preeminence Award. The award recognizes exceptional leadership, innovation and vision, contributions to the advancement of quality, effective health care delivery practices and structure, and outstanding contributions to the local public community in which the medical group is located.
"No other health care organization integrates the elements of a health plan and medical care delivery as successfully as we do at Kaiser Permanente," said Francis J. Crosson, MD, executive director of the Permanente Federation. The Permanente Federation represents the eight Permanente Medical Groups that partner with Kaiser Foundation Health Plan and Hospitals. "Our group practice approach makes it possible for the physicians of the Permanente Medical Groups to share responsibility for the quality of care and the use of resources, and to employ our combined knowledge and strength to improve the lives of Kaiser Permanente members."
"The trust and confidence of our members is our enduring goal," said David M. Lawrence, MD, chairman and CEO of KFHP/H, who has announced his retirement at the end of 2002. "We have weathered dramatic changes in healthcare while continuing to improve the quality and service of the care we deliver. Just as importantly, Kaiser Permanente has continued to make major contributions to the health of the communities in which we operate, and to create groundbreaking relationships with our labor partners."
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 vary significantly based on a number of factors including, but not limited to: the impact of competitive products and pricing; changing membership and regulatory 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 currently serve 8.6 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.
