Kaiser Foundation Health Plan and Hospitals Report Annual and Fourth Quarter 2015 Financial Results

OAKLAND, Calif., Feb. 12, 2016 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their respective subsidiaries (KFHP/H) reported their 2015 annual and fourth quarter financial results. Total operating revenue for 2015 was $60.7 billion, compared to $56.4 billion in 2014. Operating income was $1.8 billion, equal to 2.9 percent of operating revenue, compared to $2.2 billion in 2014, equal to 3.9 percent of operating revenue. Net income was $1.9 billion in 2015, compared to $3.1 billion in 2014. Capital spending was $2.7 billion in 2015, compared to $2.8 billion in 2014.  

"Performance on service, access, quality and affordability continued to be strong in 2015," said Chairman and CEO Bernard J. Tyson. "As a result, more people are choosing Kaiser Permanente. Our membership grew by nearly 650,000 and we now care for more than 10.2 million Americans. We believe our model is the right approach for the future of health and health care in this country, and we are committed to ensuring that our members receive the care and services they need at a price they can afford."

Membership increased by 6.7 percent from 2014, with growth occurring across individual, employer group, Medicare and Medicaid lines of business.

KFHP/H's capital spending reflected investments in technology and facilities to support member care, including building additional capacity for continued membership growth. Capital spending in 2015 went toward the completion of nine new medical office buildings, including a state-of-the-art medical office in Manhattan Beach, California that integrates technology and wellness programming. In 2015, Kaiser Permanente also opened the last of 13 seismic replacement hospitals — Kaiser Permanente South Bay Medical Center in Harbor City, California. Significant investments were made in a variety of information technologies that improve care, convenience and efficiency, including telehealth, digital services for consumers, pharmacy systems and others.

"Our ongoing investments are key to ensuring delivery of high-quality and affordable health care to our members and patients," said Executive Vice President and CFO Kathy Lancaster. "We continue to improve the availability of care by providing new avenues of access and convenience."

Through advances in technology, Kaiser Permanente's patients now access care and service more frequently via secure messaging, telehealth, micro-clinics and mobile health vehicles. In 2015, www.kp.org was accessed nearly 520,000 times per day, an increase of 16 percent from 2014. In particular, more members used this tool as a means to communicate with caregivers and access their medical information. Throughout 2015, over 22 million secure email interactions occurred between members and care providers, a 12 percent increase from 2014. Additionally, members filled close to 20 million prescriptions and viewed over 40 million lab results online in 2015, an increase from 2014 by nearly 12 percent and 8 percent, respectively.

In 2015, KFHP/H provided approximately $2.1 billion, or 3.5 percent of their operating revenue, to support community benefit programs and services. KFHP/H community benefit investments provide care for low-income individuals, support community-based health partnerships, and help KFHP/H conduct and share important medical research.

For the quarter ending December 31, 2015, combined total operating revenue was $15.1 billion, compared to $14.2 billion in the same period in 2014. Operating loss was $98 million in the fourth quarter of 2015, compared to operating loss of $63 million in the same quarter of the prior year. Net loss for the fourth quarter of 2015 was $67 million, versus net loss of $68 million for the same period in 2014. Capital spending in the fourth quarter of 2015 was $799 million, compared to $725 million in capital spending in the fourth quarter of 2014. These fourth quarter results are typical of seasonality, which is driven by the timing of revenue and expense increases.

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 media 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 more than 10 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.

Contact:
Diana Yee 510-271-6671
[email protected]

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SOURCE Kaiser Foundation Health Plan, Inc.

Related Links

http://www.kp.org