Kaiser Reports Major Jump in Earnings Despite Flat Membership
Kaiser Foundation Health Plan, Kaiser Foundation Hospitals and their subsidiaries reported that net income for the first three quarters of 2007 more than doubled from 2006, while third-quarter results also showed strong gains, the San Francisco Business Times reports.
Operating income for the first nine months of 2007 was $1.8 billion, up from $868 million for the same period in 2006. Similarly, net income jumped from $1.1 billion for January-September 2006 to $2.5 billion in 2007.
Operating revenue for the period was $28.2 billion, a 9.3% increase from the $25.8 billion reported in 2006.
Capital spending for the period was down slightly from $1.9 billion in the first three quarters of 2006 to $1.8 billion in 2007.
Membership remained consistent at about 8.7 million nationwide; about three-fourths of Kaiser members live in California (Rauber, San Francisco Business Times, 11/7).
Looking at the third quarter of 2007 on its own, Kaiser officials reported that investment income more than tripled from $62 million in 2006 to $205 million in 2007.
In addition, net income was up 57% from $417 million in 2006 to $654 million this year, while operating income jumped 26.5%.
Operating revenue rose to $9.4 billion from $8.7 billion a year earlier, a gain of about 8% (Colliver, San Francisco Chronicle, 11/8).
For the quarter, capital spending amounted to $641 million, up from $631 million in 2006 (San Francisco Business Times, 11/7).