Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals Report Fourth Quarter and Fiscal-Year 2008 Results
Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported
total operating revenue of
2008
was
million
quarters was primarily due to an adjustment of certain self-insured
liabilities in the fourth quarter of 2008. Financial market declines impacted
KFHP/H’s investment portfolio in the fourth quarter, resulting in a net non-
operating loss of
in the same quarter last year. As a result, there was a net loss of
million
same period last year.
“Overall, our core operating business performed positively, as we had
expected. But as the total economic environment got tougher, we saw losses in
our investment portfolio,” said Chairman and Chief Executive Officer
Halvorson
results, especially in the latter half of the year.”
Total operating revenue for fiscal-year 2008 was
from
compared to
resulted in a net non-operating loss of
non-operating income of
contributed to a net loss of
of
“In the midst of this continuing recession, we believe that our ability to
deliver better care more efficiently will give us a competitive advantage.
The new information technology systems we have been implementing during the
past several years are enabling us to focus our efforts on our most expensive
care delivery areas in ways that both improve care and help us achieve our
goal of price trends that are below those of our competitors. We believe the
market will value a lower rate of price increases,” added Halvorson.
“We continue to follow the financial markets closely and are preparing for
additional headwinds,” said Executive Vice President and Chief Financial
Officer
poised to take appropriate actions that limit losses and position us to
participate in market recoveries. In addition, we continue to hold a highly
diversified and liquid portfolio of investments, which we have marked down to
current market values for financial reporting purposes. Over the long run,
our portfolio has performed well, and we believe that our investment strategy
will meet our long-term goals.”
Capital spending in the fourth quarter was nearly
with the fourth quarter of 2007. Similarly, capital spending in 2008 reached
the past year, KFHP/H opened three new hospitals, a hospital tower, and 10
medical office buildings to meet the needs of members. In 2009, KFHP/H will
reduce or defer some capital projects and adjust project timelines where it is
prudent to do so.
“During the past several years, we have significantly enhanced our care
delivery infrastructure, including our information systems, facilities, and
medical technology. These enhancements give our physicians, nurses, labor
partners, and other employees the ability to strengthen the quality of our
care and service, and manage costs. Capitalizing on our integrated system
while making progress with the continuing roll-out of our systems
infrastructure will help us emerge from the current economic storm an even
stronger leader in health care. As we move in that direction, we will keep
focused on our highest priorities, the total health of our members and
improving the health of our communities,” added Lancaster.
Due to rising unemployment and the financial challenges facing our members
and customers, total membership declined by approximately 30,000 members, or
0.3 percent, during the past year. As of
than 8.6 million members.
Consistent with its not-for-profit mission, KFHP/H uses its resources to
support a wide range of community benefit programs. These programs provide
care for low-income individuals and support community-based health
partnerships, research, training, and community health organizations. In the
fourth quarter of this year, a portion of KFHP/H’s community benefit
activities included 739 community benefit grants and donations. During 2008,
KFHP/H provided approximately
community benefit programs.
“Despite the economic challenges of the past year, we are not losing sight
of our ongoing commitment to our communities. Those who are most vulnerable
often suffer the most in difficult times such as these. We are working harder
than ever to make sure that our community benefit programs provide the
greatest tangible value to our communities,” said Halvorson.
A leader in the use of information technology to improve health care,
KFHP/H continues to expand its electronic health record system KP
HealthConnect(TM) and its personal health record My Health Manager. All
members can now securely access their personal health records online and
communicate with their physicians and clinicians through My Health Manager on
kp.org. In the fourth quarter of 2008, members sent more than 1.6 million
secure messages to their Kaiser Permanente physicians and clinicians, filled
nearly 1.5 million prescriptions online, and viewed nearly 4.2 million lab
test results online. Over the course of the past year, members sent more than
6 million secure messages to their care providers and went online to view more
than 16.7 million lab test results.
“We have seen huge increases in the number of members who are adopting and
regularly using our electronic health care tools to obtain information and
communicate with their health care providers,” said Halvorson. “As more
members go online with Kaiser Permanente, we are demonstrating the full
benefits and unique strengths of our integrated health care model one click at
a time.”
About Kaiser Permanente
Kaiser Permanente is America’s leading integrated health plan. Founded in
1945, the program is headquartered in
8.6 million members in nine states and the
encompasses Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals
and their subsidiaries, and the Permanente Medical Groups. Nationwide, Kaiser
Permanente includes approximately 164,000 technical, administrative and
clerical employees and caregivers, and 14,000 physicians representing all
specialties. The organization’s Labor Management Partnership is the largest
such health care partnership in
130,000 workers, managers, physicians and dentists work together to make
Kaiser Permanente the best place to receive care, and the best place to work.
In 2007, Kaiser Permanente proudly directed
benefit programs and services through research, community-based health
partnerships, and direct health coverage for low-income families and
collaboration with community clinics, health departments and public hospitals.
For more Kaiser Permanente news, visit the Kaiser Permanente News Center at:
http://xnet.kp.org/newscenter
Except for historical information contained herein, the statements in this
release may contain forward-looking statements. Forward-looking statements
include, among other things, statements that refer to plans and expectations
such as future events and future financial performance. Forward-looking
statements involve a number of risks and uncertainties. Actual results may
differ materially from those expressed or implied by the statements herein
based on a number of factors including, but not limited to: the impact of
competitor products and pricing; government regulations; health care
legislation; changing membership requirements; and the change in economic
conditions of the various markets the system serves.
http://www.kaiserpermanente.org
SOURCE Kaiser Permanente