Press Releases: National
April 30, 2002
Kaiser Permanente maintains strong 1st quarter performance
OAKLAND, Calif. – Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported net income of $297 million and operating income of $288 million on operating revenues of $5.5 billion for the first quarter ended March 31, 2002. In the first quarter of 2001, KFHP/H posted net income of $156 million and operating income of $185 million on operating revenues of $4.9 billion.
Membership for the first quarter grew by 126,000 members to total over 8.3 million members.
"This is a strong start to 2002, demonstrating the commitment of the organization to achieving operational excellence," said Dale Crandall, president, KFHP/H. "The key drivers of this improved performance continue to be improved revenues, moderate membership growth, innovative approaches to delivery of medical care, and the prudent stewardship of our membership dues. Improved performance is particularly important at this time in view of the rapid increase in the organization's capital commitment that is expected to reach $1.6 billion in 2002. This is up from $1 billion that we spent in 2001. We need to continue building new hospitals and clinics, and continue our investment in technology to maintain our quality care and quality service."
"I'm delighted with our strong results for the first quarter," said George Halvorson, newly appointed chairman and CEO of KFHP/H. "For Kaiser Permanente to achieve its mission, we need to be able to make the kind of investments in care and facilities that can only be done if we have a positive performance. As a not-for-profit health plan, our net revenue is primarily used to make care system improvements for our members. It is our goal to continue that commitment to both operational and medical excellence, and to invest our earnings accordingly."
Kaiser Permanente is America's leading integrated health care organization. Founded in 1945, it is a not-for-profit health plan with headquarters in Oakland, California. Kaiser Permanente serves the health care needs of 8.3 million members in 9 states and the District of Columbia. Today, it encompasses Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries, and the Permanente Medical Groups. Nationwide, Kaiser Permanente includes about 100,000 technical, administrative and clerical employees and approximately 11,000 physicians representing all specialties.
Kaiser Permanente is America's leading integrated health care program. Founded in 1945, it is a not-for-profit, multi-specialty, group-practice prepayment program serving the health care needs of 8.3 million members in 9 states and the District of Columbia. Kaiser Permanente's national headquarters are in Oakland, Calif.
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, 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.
