OAKLAND, Calif., May 6, 2016 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) today reported a combined total operating revenue of $16.3 billion for the quarter ending March 31, 2016, compared to $15.0 billion in the same period in 2015. Operating income was $701 million in the first quarter of 2016, compared to $741 million in the same quarter last year. KFHP/H reported a net non-operating loss, which excludes unrealized gains, of $197 million in the first quarter of 2016, compared to net non-operating income of $301 million in the same quarter of 2015. As a result, net income for the first quarter was $504 million, versus $1.0 billion in the same period of 2015.
Kaiser Permanente experienced strong membership growth in the first quarter of 2016, adding nearly 384,000 new members. This quarter's growth represents a 3.7 percent increase since December 31, 2015 and brings membership to 10.6 million.
"Our operating margin in the first quarter is on plan and as anticipated," said Chairman and CEO Bernard J. Tyson. "We continue to deliver on our mission of affordability to 10.6 million people while improving quality, access to care and innovation."
Capital spending in the first quarter of 2016 was $669 million, compared to $740 million in the same quarter in 2015. KFHP/H's capital spending reflects their continued investments in facilities and technology to support members' care. Currently, Kaiser Permanente has over 50 health care facilities in the active design or construction phase for 2016-2019. This includes 25 medical offices, a new expansion hospital in San Diego, and a new Southern California Regional Lab, as well as the Kaiser Permanente School of Medicine, which will open in Pasadena, California.
"Our trend of sound operating results continued in the first quarter of the year," said Kathy Lancaster, executive vice president and chief financial officer. "We continued to remain vigilant about managing costs and advancing our efforts to make care and coverage more affordable while maintaining our focus on quality."
Consistent with their not-for-profit mission, KFHP/H also devote resources to improve the health of the communities they serve. KFHP/H community benefit investments provide care for low-income individuals and underserved communities, reinforce community-based health partnerships, support research and train health care workers. In the first quarter of 2016, KFHP/H continued to invest in a growing range of programs to serve the needs of local 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 business and economic conditions. Forward-looking statements are based on information as of the date of this press release, and we assume no obligation to update or revise any of these forward-looking statements, whether as a result of new information, future events or otherwise.
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, Kaiser Permanente has a mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve. We currently serve 10.6 million members in eight 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: kp.org/share.
For more information, contact:
Marc Brown: 510-271-6328
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SOURCE Kaiser Permanente