Drop in Investment Returns Cuts Into Kaiser Earnings for Q1 2008
On Monday, Kaiser Foundation Hospitals and Health Plan reported a 64% drop in net income for the first quarter of 2008 from the same period a year earlier, the East Bay Business Times reports.
Kaiser reported $250 million in net income on $10.1 billion in operating revenue, compared to $698 million in income and $9.4 billion in revenue for the first quarter of 2007.
Kaiser attributed the drop in income to "turbulence in the financial markets" that hit its investment holdings, pointing to a $295 million loss in nonoperating income for the first quarter.
Operating income increased from $521 million in the first quarter of 2007 to $545 million in the first quarter of 2008 (Hogarth, East Bay Business Times, 5/6).