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News release: NationalMay 4, 2007
For more information, contact: Claire Holmes at 510 271 5953 Kaiser Foundation Health Plan and Hospitals Report Positive First Quarter 2007 Results Total revenue for the quarter ended March 31, 2007, was $9.4 billion, compared to $8.6 billion in the same period in 2006 Oakland, Calif., May 4, 2007 – Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported total revenue of $9.4 billion in the quarter ended March 31, 2007, compared to $8.6 billion in the same period last year. Membership grew by approximately 40,000 in the first quarter of the year, increasing total membership to 8.7 million. Net income for the quarter ended March 31, 2007 was $698 million, compared to $448 million, in the first quarter of 2006. In addition, capital spending totaled $531 million for the first three months of 2007, compared to $661 million in the first quarter of 2006, as KFHP/H continued to invest earnings in its integrated care delivery system to broaden access, meet seismic requirements and strengthen the benefits it provides to its members, purchasers and the communities it serves. KHFP/H uses its earnings to fund a broad range of community benefit programs that seek to improve the health of the communities it serves by providing direct health coverage for low-income families, research, collaboration with community clinics, health departments and public hospitals, and community-based health partnerships. "Kaiser Permanente continues to show a positive trend in its financial performance over the first quarter of last year," said Kathy Lancaster, executive vice president and chief financial officer. "The first quarter results are historically the strongest, in part because a significant number of rate increases go into effect in January, while cost increases occur throughout the year. This quarter, Kaiser Permanente is seeing a reduction in its expense trends related to medical costs, information technology and other overhead supporting its health care delivery, and in administrative costs." Chairman and CEO George C. Halvorson notes the first-quarter results show Kaiser Permanente is well positioned to meet the financial challenges of the health care marketplace, and reflects the organization’s commitment to total health for its members. "Kaiser Permanente's investment in cutting-edge electronic medical record technology, KP HealthConnect™, is establishing the largest civilian electronic medical records system in the United States," Halvorson said. "As we move from the implementation phase to seeing the realization of the benefits it provides, we are helping to transform the way our members manage their health and partner with our care providers." "The core strength of Kaiser Permanente's integrated care delivery system comes from its physicians, nurses and caregivers who work closely with the organization's technical, administrative and clerical teams to serve its members," Lancaster added. "Coupled with Kaiser Permanente's successful labor management partnership, the organization offers its members high-quality health care and delivers on the promise: We are here to makes lives better." 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 America's leading integrated health plan. Founded in 1945, it is a not-for-profit; group practice program headquartered in Oakland, Calif. Kaiser Permanente serves more than 8.7 million members in nine states and the District of Columbia. Today 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 156,000 technical, administrative and clerical employees and caregivers, and 13,000 physicians representing all specialties.
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