Kaiser Foundation Hospitals and Health Plan Report 2011 First Quarter Financial Results
OAKLAND, Calif., May 6, 2011 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their subsidiaries (KFH/HP) reported today that combined total operating revenue for the quarter ending Mar. 31, 2011, was $12.0 billion, compared to $11.0 billion in the same period in 2010. Operating income was $630 million in the first quarter of 2011, compared to $481 million in the same quarter of the prior year. Net non-operating income was $291 million in the first quarter of 2011, compared to a net non-operating income of $225 million in the same quarter of 2010. As a result, net income for the first quarter was $921 million, versus $706 million in the same period of 2010. First quarter results typically are higher than subsequent quarters due to timing of revenue and expense trends.
Capital spending in the first quarter of 2011 was $623 million, compared to $458 million in the same quarter in 2010. 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 earthquake standards.
Total membership increased by approximately 208,000 members since Dec. 31, 2010, and is currently at over 8.8 million members.
"Our strong membership growth and consistent performance, coupled with improvement in the financial markets, contributed to our overall net income," said Kathy Lancaster, executive vice president and chief financial officer. "We are pleased that our financial performance allows us to continue to invest in technology and facilities, and support high-quality, affordable health care."
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 2011, the organizations funded 217 grants and donations nationwide to support a broad and growing range of programs to serve the needs of our communities.
"We continue to reinvest in our people and technology to deliver the right care at the right time," said George Halvorson, chairman and chief executive officer. "Our integrated model allows us to meet the evolving needs of our members and the communities we serve in a changing health care environment, consistently delivering patient and family-centered care."
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 serve over 8.8 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.
SOURCE Kaiser Permanente