Press Releases: National
August 4, 2006
Kaiser Foundation Health Plan and Hospitals Continue to Invest in Care Delivery and Growth Projects in Second Quarter
OAKLAND, Calif. – Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported total revenue of $8.5 billion for the quarter ended June 30, 2006, an increase of approximately $800 million over the $7.7 billion in total revenue reported in the same period last year. Membership grew by almost 44,000 members in the quarter, putting total membership at nearly 8.6 million members. Capital spending continued at a robust pace, totaling $630 million in the second quarter of this year, compared to $547 million in last year’s second quarter.
Net income for the quarter ended June 30, 2006, was $272 million, compared to $363 million in the second quarter of last year. KFHP/H’s operating expenses, including those associated with the continued investment in facilities expansion, seismic retrofitting and care delivery programs, impacted the second quarter’s results.
“As health care needs change, we are focusing on strengthening the quality of care and service we provide in order to meet the evolving demands of our members, customers and the communities we serve,” said KFHP/H Chairman and Chief Executive Officer George C. Halvorson. “We are using our earnings to make important investments in our care programs and services, facilities and technology infrastructure in order to usher in the next generation of providing care to our members.”
KFHP/H’s revenues also fund numerous community benefit programs that include providing direct health care coverage for low-income families, community-based health partnerships, research and collaboration with community health organizations, including health departments, clinics and public hospitals.
“Our strong financial position and membership gains allow us to continue supporting our care delivery and growth projects, including our important facilities expansion efforts,” said Senior Vice President and Chief Financial Officer Kathy Lancaster. “As we pursue our growth strategy, we are working on growing into the capacity we are creating and improving our operational efficiencies while enhancing the quality of our care and service. This will help us provide even greater value and convenience for our members and customers.”
KFHP/H is expanding its portfolio of health care solutions, which now includes deductible HMO and Total Replacement offerings that complement its traditional HMO offering. “With our new health care solutions, we are meeting the diverse needs of more members than ever,” said Halvorson. “And as KP HealthConnect rolls out one feature after another, our members are gaining unprecedented access and flexibility in managing their health and health care.”
KP HealthConnect combines patient records with clinical practices, appointments, registration and business systems, and is anticipated to be the largest, electronic non-governmental medical records system in the United States once fully implemented. It is currently being implemented across KFHP/H’s regions.
“From our clinical programs and services to the cutting-edge technology of KP HealthConnect to the renovation and construction of facilities, we are working on a comprehensive program to broaden access and provide the best care possible to our members and customers,” said Halvorson. “And behind these efforts is our organization’s true strength, which comes from the combined dedication and hard work of our physicians, nurses, caregivers, and technical, administrative, clerical teams and union 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; government regulations; health care legislation; changing membership 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.
