Press Releases: National
May 6, 2008
Kaiser Foundation Health Plan and Hospitals Reports First Quarter 2008 Financial Results
Oakland, Calif. – Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) today reported total operating revenue of $10.1 billion for the quarter ended March 31, 2008, compared to $9.4 billion in the same period last year. Net income in the first quarter of this year was $250 million versus $698 million in the first quarter of 2007. Operating income in the first quarter increased slightly to $545 million from $521 million in the same period last year. In addition, more than 25,000 new members joined Kaiser Permanente in the first three months of the year. Total membership is nearly 8.7 million members.
The decline in net income in the first quarter of 2008 was due to the recent turbulence in the financial markets impacting KFHP/H's investment portfolio. This resulted in a loss of $295 million in non-operating income versus a gain of $177 million in the first quarter of 2007.
On a similar pace with the first quarter of last year, capital spending was $508 million as KFHP/H continued to enhance its health care systems, technology, facilities, and health programs and services. To serve the needs of its communities, KFHP/H also continued to invest in a broad and growing range of community benefit programs in the first quarter of this year. In 2007, KFHP/H provided more than $1 billion in community benefit. In 2006, community benefit was approximately $800 million.
KFHP/H uses its earnings to invest in facilities, systems and processes to better serve the needs of its patients, members and communities. The organization opened a new hospital in Panorama City, California, in March and is planning to open additional hospitals, tower expansions and medical office buildings later this year. A new hospital in Irvine, California, is scheduled to open shortly, as is a hospital tower expansion in Moanalua, Hawaii. KFHP/H's strategic facility program supports innovations in patient, environmental and workplace safety.
"We are pleased that our financial performance, despite a challenging economic environment, allows us to continue investing in our technology and facilities," said Executive Vice President and Chief Financial Officer Kathy Lancaster. "These important investments are helping us enhance the care and service we provide to our members and the communities we serve."
Kaiser Permanente's electronic health record project KP HealthConnect™ is producing benefits toward improving quality, service and patient safety. In April 2008 KFHP/H made outpatient medical records available for all of its 8.7 million members through the completion of its ambulatory electronic health record implementation. In addition, all members can securely access their personal health records and communicate with their physicians through kp.org.
"One of our goals is to enhance quality of care and service by becoming a world leader in electronic connectivity with members and patients," said Chairman and Chief Executive Officer George Halvorson. "That agenda is on track. Last year, members visited the kp.org site more than 33 million times to manage their health care online, with roughly 1.9 million members actively using My health manager . Our members also used the new e-messaging capability 3.6 million times, viewed lab results 10 million times, e-scheduled appointments 5 million times, and refilled 2.7 million prescriptions online. We are very happy with the levels of progress we are making in electronic connectivity."
A recent study of Kaiser Permanente's experience was published in the American Journal of Managed Care , illustrating how Web-based options are playing a larger role in doctor-patient interaction and are contributing to the total health and service satisfaction of Kaiser Permanente's members.
About Kaiser Permanente
Kaiser Permanente is America's leading integrated health system. Founded in 1945, it is a group practice prepayment program headquartered in Oakland, Calif. Kaiser Permanente serves the health care needs of nearly 8.7 million members in nine states and the District of Columbia. It encompasses the not-for-profit Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries, and the for-profit Permanente Medical Groups. Nationwide, Kaiser Permanente includes approximately 160,000 technical, administrative and clerical employees and caregivers, and more than 13,000 physicians representing all specialties. The organization's health care Labor Management Partnership is the largest health care partnership in the United States. It governs how more than 130,000 workers, managers, physicians and dentists work together to make Kaiser Permanente the best place to receive care, and the best place to work. For more Kaiser Permanente news, visit the KP News Center at: www.kp.org/newscenter.
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 competitor 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.
