Kaiser Foundation Hospitals and Health Plan Report First Quarter 2014 Financial Results
OAKLAND, Calif., May 9, 2014 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $13.9 billion for the quarter ending March 31, 2014, compared to $13.1 billion in the same period in 2013. Operating income was $822 million in the first quarter of 2014, compared to $551 million in the same quarter last year. Net non-operating income was $324 million in the first quarter of 2014, compared to net non-operating income of $219 million in the same quarter of 2013. As a result, net income for the first quarter was $1.1 billion, versus $765 million in the same period of 2013. First quarter results are typically higher than subsequent quarters due to timing of revenue and expense trends.
"Our first quarter 2014 performance demonstrates that we are making progress in our efforts to gain efficiencies and enhance our effectiveness, while maintaining our focus on high-quality care. Reducing our cost trends allow us to be more affordable to our members and customers," said Kathy Lancaster, executive vice president and chief financial officer.
For the quarter, membership increased by 243,000 members since Dec. 31, 2013, and is approximately 9.3 million members.
In the first quarter of 2014, capital spending was $827 million, compared to $779 million in the same quarter in 2013. KFH/HP's capital spending reflects our continued investments in technology and facilities to support our members' care. With completion of the Oakland, Redwood City, San Leandro and Harbor City facilities in 2014, all Kaiser Permanente hospitals will be in compliance with 2015 seismic safety standards.
"Our focus on improving our quality, service and efficiency is working, and we are making progress on advancing our mission on affordability," said Chairman and CEO Bernard J. Tyson. "Employers, consumers, and even the government are relying on us to make health care more affordable. Our financial performance gives me added confidence that we will deliver more affordable pricing and greater value in 2015 and beyond."
As nonprofit organizations, we return our net earnings to our members, customers and communities in the form of lower rates, capital investments in facilities and infrastructure to enhance care and service, and community benefit programs to improve the health of our communities. In addition, we must also maintain the necessary levels of financial security so our members and communities can continue to rely on us for high quality care into the future.
"We are confident we will deliver on the full promise of Kaiser Permanente's integrated model, and lead the nation in making high-quality care affordable to more Americans," Tyson said.
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 nonprofit 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 approximately 9.3 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.
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SOURCE Kaiser Permanente