Kaiser Posts Highest Health Care Reinvestment Rate
The Kaiser Foundation Health Plan led all other managed care plans in the state in the amount of revenue it reinvested back into medical care in fiscal year 2000, according to a California Medical Association report released Friday, the San Diego Union-Tribune reports. Kaiser's Southern California operations posted the highest rate, reinvesting 96.1% of its revenue into medical care, while Kaiser's Northern California operations "put back" 96%. Remaining revenue went toward "administrative costs and profits." The report found that One Health Plan of California reinvested the lowest percentage of revenue, 54%, back into medical care (San Diego Union-Tribune, 3/24). The eighth annual "Knox-Keene Health Plan Expenditures Summary" used data from the state Department of Managed Health Care to detail the financial status of California's managed care plans. CMA President Frank Staggers said, "CMA continues to have major concerns as to the amount of health care funds that are being used for administration or placed in the profit column rather than providing for the care of patients" (CMA release, 3/21). However, the association "warn[ed]" that the reinvestment and profit figures should be measured against "other factors," including the size of the health plan and benefit packages (San Diego Union-Tribune, 3/24).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.