Kaiser Divisions Report Upswing in Profit, Membership
Kaiser Permanente on Thursday announced that its not-for-profit Kaiser Foundation Health Plan, Kaiser Foundation Hospitals and subsidiaries last year posted increases in revenue, net income and health plan membership, the San Francisco Business Times reports.
Kaiser Foundation Chair and CEO George Halvorson said the figures illustrate a:
- 10.6% increase in net revenue from 2005 to 2006;
- 30% increase in net income from 2005 to 2006; and
- 2.5% increase in health plan enrollment from 2005 to 2006.
Halvorson said Kaiser's "[n]ew product increases have contributed to an increase in total membership, and we have made progress in reducing the overall cost trend, which is vital to ensure that we offer long-term, sustainable value for our members" (Rauber, San Francisco Business Times, 2/15).
Kaiser on Thursday also announced that its operating income increased by more than 20% in 2006, the Sacramento Business Journal reports.
The 2006 operating margin of 2.8% is far below the 5.3% margin reported in 2004, but capital spending on health care technology and facilities continues to increase, according to the Business Journal (Robertson, Sacramento Business Journal, 2/15).