Kaiser Hospitals, Health Plan Post Major Gains in 3Q

Oakland, Calif.-based Kaiser Foundation Hospitals and the Kaiser Foundation Health Plan recently posted major gains in the third quarter of fiscal year 2012, as net income reached $803 million versus a net loss of $45 million in the same quarter last year.

Non-operating income, which includes investments, was the major difference in this year's third quarter. Last year, Kaiser lost $365 million in the third quarter to investment losses.

Operating income in the third quarter shot up 75 percent, from $320 million last year to $561 million this year. Operating revenue also increased from $11.9 billion in the third quarter of 2011 to $12.7 billion in this year's third quarter. Kaiser CFO Kathy Lancaster said in the news release that capital investments helped boost quarterly earnings, including the recent opening of Kaiser Permanente Anaheim (Calif.) Medical Center.

For the nine months ended Sept. 30, total operating revenue equaled $38 billion, more than $2 billion higher than the first nine months last year. Year-to-date net income totaled $2.1 billion compared with $1.5 billion for the same period in 2011.

Earlier this month, Kaiser announced Bernard Tyson, the current president and COO of the integrated health system, would become the next chairman and CEO. He will replace George Halvorson, who will retire in December 2013.

More Articles on Kaiser Permanente:

Kaiser Permanente Names Bernard Tyson as Next Chairman and CEO

Kaiser Permanente Lays Off 84 Employees in Southern California

California: Healthcare Reform's Golden State?

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