Kaiser Reports Q4 Loss
Kaiser Foundation Health Plan reported a fourth quarter net loss of $211 million on operating revenue of $7.9 billion, but "continues to push ahead with its ambitious plans of expansion and renovation," the Oakland Tribune reports. In the fourth quarter last year, Kaiser reported net income of $302 million on revenue of $7.1 billion.
Full-year net income for 2005 was $1 billion, compared with $1.6 billion in 2004. Membership increased by 2.5%, or 208,000 members, over 2004.
Spokesperson Mike Lassiter attributed the fourth quarter loss to increased capital expenditure, spending on new initiatives and higher hospital utilization costs that are common at this time of the year. Capital spending at Kaiser increased to $2.5 billion, compared to $2.2 billion in the previous year.
Kaiser is investing about $10 billion in projects in Northern California, including building new hospitals, expanding and replacing existing hospitals and seismic retrofitting hospitals. The loss is the first quarterly net loss for Kaiser in three years (Morrill, Oakland Tribune, 2/22).