Kaiser Foundation Hospitals and Health Plan Report Third Quarter 2013 Financial Results
OAKLAND, Calif., Nov. 8, 2013 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today operating revenue of $13.2 billion for the quarter ending September 30, 2013, compared to $12.5 billion in the same period in 2012. Operating income was $518 million for the quarter ending September 30, 2013, compared to $587 million in the same period in 2012. Net non-operating income in the third quarter of 2013 was $241 million, compared to net non-operating income of $242 million in the same quarter last year. Net loss from discontinued operations, which included our previously announced divestiture of our Ohio operations, was $124 million, compared to $26 million in the same quarter of 2012. As a result, net income in the third quarter was $635 million, versus $803 million in the same quarter last year. Capital spending in the third quarter of 2013 was $722 million, versus $842 million in the same quarter of last year.
For the nine months ended September 30, 2013, operating revenue was $39.6 billion, compared to $37.6 billion for the same period in 2012. Year-to-date operating income was $1.7 billion, compared to $1.5 billion for the same period in 2012. Net non-operating income was $604 million in the first nine months of this year, compared to $593 million in the same period last year. Net loss from discontinued operations was $131 million in the first nine months of this year, compared to $33 million in the same period of 2012. Year-to-date net income was $2.2 billion, compared to $2.1 billion for the same period in 2012. Year-to-date capital spending was $2.3 billion, compared to $2.5 billion in the same period last year.
Kaiser Permanente membership has grown by approximately 95,000 members since December 31, 2012. As of September 30, 2013, Kaiser Permanente has a total of approximately 9.1 million members.
"While continuing to work on our goal of making care more affordable, we are delivering solid financial results," said Bernard J. Tyson, CEO of Kaiser Permanente. "With the health care industry going through significant transformation, we continue to invest in our people, our technology and our infrastructure to ensure the highest quality care and deliver the best care experience."
KFH/HP's capital spending reflects continued investments in technology and facilities to support our members and deliver high-quality care. Currently, there are four seismic hospitals under construction. Six new medical office buildings were opened this quarter and one new expansion hospital. Since 2009, the organization has expanded, replaced, and opened 11 hospitals in California, Hawaii and the Northwest, as well as provided improved access to our medical offices.
"We remain focused on financial performance that allows us to make the necessary investments in the organization's infrastructure, including health technology, mobile applications, and seismic upgrades to drive both high quality care and affordability for our customers, members and the communities we serve," said Chief Financial Officer and Executive Vice President Kathy Lancaster.
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 4.4 million members who are registered online. During Q3 2013, members securely viewed 8.9 million laboratory results, exchanged 3.8 million emails with their Kaiser Permanente caregivers and refilled 3.8 million prescriptions online.
As not-for-profit charitable organizations, KFH/HP devote their resources to improving the health of our members and the communities we serve. In the first nine months of 2013, KFH/HP funded approximately 730 grants and donations nationwide. KFH/HP community benefit investment supports a wide range of KFH/HP and safety net provider programs that provide care for low-income individuals and underserved communities. The organizations also support community-based health partnerships, conduct research and train health care workers. In the third quarter of 2013, KFH/HP continued to support a broad and growing range of programs to serve the needs of our 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, 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 approximately 9.1 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: http://share.kaiserpermanente.org.
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SOURCE Kaiser Permanente