KFH/HP reports total operating revenue of $11.9B for third quarter 2011

Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $11.9 billion for the quarter ending September 30, 2011, compared to $11.1 billion in the same period in 2010. Operating income was $320 million in the third quarter of 2011, compared to $366 million in the same quarter last year. Financial market declines affected KFH/HP's investment portfolio in the third quarter, resulting in a net non-operating loss of $365 million in the third quarter of 2011, compared to net non-operating income of $268 million in the same quarter last year. As a result, there was a net loss of $45 million in the third quarter versus net income of $634 million in the same quarter last year.

Kaiser Permanente membership has grown by approximately 217,000 members since December 31, 2010, totaling approximately 8.9 million members as of September 30, 2011. Capital spending in the third quarter of 2011 was $861 million, versus $672 million in the same quarter of last year.

For the nine months ending September 30, 2011, total operating revenue was $35.8 billion, compared to $33.1 billion for the same period in 2010. Year-to-date operating income was $1.3 billion, compared to $1.2 billion for the same period in 2010. Net non-operating income was $199 million in the first nine months of the year, compared to $584 million in the same period last year. Year-to-date net income was approximately $1.5 billion, compared to $1.7 billion for the same period in 2010. Capital spending for the first nine months of 2011 was approximately $2.2 billion, compared to $1.7 billion in the same period last year.

"Our financial performance has allowed us to make the appropriate investments in our facility and technology infrastructure that are needed to continue to serve our members now and in the future," said Kathy Lancaster, executive vice president and chief financial officer. "The seismic rebuilding projects underway at six of our hospitals underscore our commitment to providing a safe and sustainable environment for health care delivery."

Kaiser Permanente continues its leadership in providing new and innovative ways to improve care and 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 online. Currently, kp.org serves over 100 million visitors each year. Year-to-date in 2011, members have received 52.1 million laboratory results, exchanged 9.3 million emails with their Kaiser Permanente doctors and caregivers and refilled 7.2 million prescriptions online.

"Providing high-quality, affordable health care to our members and the communities we serve is our long-standing mission as well as our daily focus," said George Halvorson, chairman and chief executive officer. "Through our investment in the tools and processes that support patient-centered care and through our commitment to continuous improvement, we are finding new and innovative ways to support total health and improve care outcomes and affordability."