Kaiser Foundation Hospitals and Health Plan Report Third Quarter 2014 Financial Results
Nov 07, 2014, 04:15 ET
OAKLAND, Calif., Nov. 7, 2014 /PRNewswire/ -- Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their respective subsidiaries (KFH/HP) reported today a combined total operating revenue of $14.3 billion for the quarter ending September 30, 2014, compared to $13.2 billion in the same period in 2013. Operating income was $766 million in the third quarter of 2014, compared to $518 million in the same quarter last year. Net non-operating income was $228 million in the third quarter of 2014, compared to net non-operating income of $241 million in the same quarter of 2013. Income from discontinued operations was $3 million in the third quarter, compared to a loss of $124 million in the third quarter of 2013. As a result, net income for the third quarter was $997 million, versus $635 million in the same period of 2013. Capital spending in the third quarter of 2014 was $627 million, compared to $722 million in the same quarter in 2013.
For the nine months that ended September 30, 2014, total operating revenue was $42.2 billion, compared to $39.6 billion for the same period in 2013. Year-to-date operating income was $2.2 billion, compared to $1.7 billion for the same period in 2013. Net non-operating income was $900 million in the first nine months of this year, compared to $604 million in the same period last year. Income from discontinued operations was zero for the nine months ended September 30, 2014, compared to a loss of $131 million for the same period in 2013. Year-to-date net income was $3.1 billion, compared to $2.2 billion for the same period in 2013.
Year-to-date capital spending was $2.1 billion, compared to $2.3 billion in the same period last year. KFH/HP's capital spending reflects continued investments in upgrading technology and facilities to continue to deliver high-quality care and service to members and build capacity for continued membership growth. This includes the cost of upgrading hospitals to comply with California earthquake standards, including the Kaiser Permanente San Leandro Medical Center, which opened on June 3; Oakland Medical Center, which opened on July 1; and the new Redwood City Medical Center, which is scheduled to open in December 2014. Since the beginning of the year, 15 new Kaiser Permanente medical office buildings have also opened. In addition to capital spend, Kaiser Permanente also invests in community benefit programs that provide care for low-income individuals, support community-based health partnership and conduct and share important medical research.
Kaiser Permanente membership has grown by approximately 442,000 members since December 31, 2013, totaling approximately 9.5 million members as of September 30, 2014. Kaiser Permanente commercial and Medicare plans receive top quality and service ratings nationwide. Most recently, Kaiser Permanente health plans were named the No. 1-ranked commercial health plans in the nation for 21 effectiveness of care measures according to the 2014 National Committee for Quality Assurance's Quality Compass®.
"We continue to improve on quality, service and affordability and we continue to see positive results," said Chairman and CEO Bernard J. Tyson. "I am pleased that the new 2015 rates we are offering to our members and purchasers validate our commitment to affordability."
"Our efforts to increase efficiencies and effectiveness, while maintaining our focus on the needs of our members and customers, are gaining momentum," said Kathy Lancaster, executive vice president and chief financial officer. "We are committed to optimizing our integrated care delivery model and making high-quality, affordable health care available to more Americans."
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, we have 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 approximately 9.5 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