Kaiser Permanente Earnings Up for First Half of 2005, Decline for Q2
Oakland-based Kaiser Permanente on Wednesday announced that profit for the first half of the current fiscal year increased to $915 million, up $76 million from $839 million in 2004, although the firm's operating margin decreased, the San Francisco Business Times reports. Operating income increased from $756 million for the first half of 2004 to $815 million in 2005, and operating revenue increased by 11.2% from $13.9 billion last year to $15.5 billion this year.
Kaiser reported that operating expenses for the first half of 2005 increased by 11.4%. Capital investment increased from $816 million in 2004 to $926 million in 2005, in part because of ongoing construction to comply with state seismic safety rules and continuing implementation of an electronic health records system.
Second-quarter net income decreased by 10% from $404 million in 2004 to $363 million this year, and second-quarter operating income decreased by 16.3% from $386 million in 2004 to $323 million this year. Second-quarter operating revenue increased from $7 billion in 2004 to $7.7 billion in 2005.
In addition, enrollment increased by 20,500 in the second quarter, Kaiser reported (Rauber, San Francisco Business Times, 8/3).