Kaiser Permanente Reports 72% Increase in Third-Quarter Net Income
Third-quarter net income for Oakland-based HMO Kaiser Permanente increased 72% to $235 million from $137 million a year ago, company officials announced on Monday, the Oakland Tribune reports. Kaiser, the nation's largest not-for-profit HMO, reported third-quarter operating income of $251 million, up from $137 million for the year-ago quarter. Year-to-date net income increased 42% to $842 million from a year ago and year-to-date operating income rose 45% to $857 million. Third-quarter operating revenue rose 14% to $6.4 billion, despite a 1% membership decline to 8.2 million from the year-earlier quarter (Rosenberg, Oakland Tribune, 11/4). Kaiser officials attribute the growth to "favorable adjustments" in claims reserves and 2002 restructuring costs, the San Francisco Chronicle reports. Company officials also said that write-offs "weighed down" last year's results, according to the Chronicle (Colliver, San Francisco Chronicle, 11/4).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.