Kaiser Permanente Sees Increase in Net Income, Decline in Membership
Last week, the not-for-profit HMO Kaiser Permanente reported $1.6 billion in net income during the first nine months of 2009, compared with $202 million during the same period last year, the Sacramento Business Journal reports.
For the first nine months of this year, the health system reported:
- Operating income of $1.4 billion, about the same as last year; and
- Operating revenue of $31.6 billion, compared with $30.3 billion in 2008.
For the third quarter of 2009, Kaiser reported:
- Net income of $569 million, up from $399 million during the third quarter last year;
- Operating income of $233 million, compared with a loss of $706 million last year; and
- Operating revenue of $10.5 billion, up from $10.2 billion last year (Robertson, Sacramento Business Journal, 11/6).
During the same period, the insurer reported that its enrollment dropped by about 63,000 members and now totals about 8.58 million.
Officials said California's relatively high unemployment rate might account for the enrollment drop (Rauber, San Francisco Business Times, 11/6).
The health plan also announced that it has cut spending for capital projects by 2.9% so far this year (Avalos, Oakland Tribune, 11/6).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.