Market Volatility Takes Toll on Kaiser Numbers Despite Jump in Revenue
After the close of business on Monday, Kaiser Permanente announced that revenue for its foundation health plan and hospitals increased by 7.4% to $10.1 billion for the second quarter of 2008 from $9.4 billion a year earlier, the East Bay Business Times reports.
Second-quarter net income declined by 68% to $351 million from $1.1 billion in 2007. Operating income also dropped from $877 million last year to $499 million.
In addition, Kaiser reported losing $148 million on non-operating sources of income, compared with $248 million in non-operating revenue last year.
Membership remained flat at about 8.7 million, and capital spending remained consistent at about $628 million (East Bay Business Times, 8/4).