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Press Releases: National

May 11, 2012

Kaiser Foundation Hospitals and Health Plan Report 2012 First Quarter Financial Results

OAKLAND, Calif. —Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their subsidiaries (KFH/HP) reported today that combined total operating revenue for the quarter ending March 31, 2012, was $12.7 billion, compared to $12.0 billion in the same period in 2011. Operating income was $507 million in the first quarter of 2012, compared to $630 million in the same quarter of the prior year. Net non-operating income was $263 million in the first quarter of 2012, compared to a net non-operating income of $291 million in the same quarter of 2011. As a result, net income for the first quarter was $770 million, versus $921 million in the same period of 2011. First quarter results typically are higher than subsequent quarters due to timing of revenue and expense trends.

Capital spending in the first quarter of 2012 was $861 million, compared to $623 million in the same quarter in 2011. KFH/HP’s capital spending reflects our continued investments in technology and facilities to support our members’ needs, and the cost of rebuilding hospitals to comply with California seismic standards. Throughout California, there are ongoing hospital construction projects in Fontana, Harbor City, Oakland, San Leandro and Redwood City.

Total membership increased by approximately 94,000 members since Dec. 31, 2011, and now exceeds 9 million members.

“Although our operating income results were not as strong as the first quarter of 2011, we continue to maintain an earnings level that allows us to fulfill our commitment to our members, including making critical investments that meet seismic requirements and increasing connectivity," said Chief Financial Officer and Executive Vice President Kathy Lancaster. “We remain committed to these areas in order to provide high-quality, affordable health care for those we serve.”

Kaiser Permanente continues its leadership in providing new and innovative ways to improve the total health of its members and patients. All Kaiser Permanente members can access My Health Manager, Kaiser Permanente’s personal health record, to manage their personal health information securely online at Year to date in 2012, members have exchanged 3.4 million emails with their Kaiser Permanente doctors and refilled 2.7 million prescriptions online. In addition, 19 million lab results have been delivered online in the first three months of the year.

“Quality and service are paramount to Kaiser Permanente’s continued leadership in patient-focused, fully connected, team care,” said Chairman and Chief Executive Officer George Halvorson.  “Medicare recently reviewed 459 U.S. health plans based on 53 measures of quality and service and gave only nine of them their top score: 5 stars. Of those top-rated plans, five were Kaiser Permanente regions. The lowest score for any KP region was 4.5 stars. This public recognition is further evidence of our success in delivering the best possible care to all our members.”

The not-for-profit charitable organizations of KFH/HP devote significant resources to improve the health of our members and the communities we serve. The organization’s community benefit investment supports a wide range of programs that provide care for low-income individuals and underserved communities, both within KFH/HP and with safety-net providers.  KFH/HP also support community-based health partnerships, conduct research and train health care workers.  In the first quarter of 2012, the organizations funded 204 grants and donations nationwide to support a broad and growing range of programs to serve the needs of our communities.

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 differ materially based on a number of factors including, but not limited to: the impact of competitive products and pricing; government regulations; 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 more than 9 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: