Kaiser’s Earnings Come On Strong

Kaiser Permanente reported strong earnings for the third quarter ending Sept. 30, bounding back into profitability.

The Oakland-based Kaiser reported net income of $803 million for the quarter on revenues of $12.7 billion. That compares to a net loss of $45 million on revenues of $11.9 billion for the third quarter of 2011.

Kaiser officials indicated that the not-for-profit’s return to black would continue to fund capital improvements. It spent $842 million during the quarter on capital projects, compared to $861 million during the year-ago quarter. However, capital spending through the first nine months of 2012 totaled $2.5 billion, up about 12% for the comparable year-ago period.

For the year to date, net income is $2.1 billion, up 40% from the $1.5 billion reported during the first nine months of 2011.

Revenue for the first nine months of the year reached $38 billion, up 6% from the $35.8 billion reported for the same period last year.
“Our financial performance allows us to continue to support ongoing, needed investments in the organization's infrastructure to drive both quality and affordability, including health technology, mobile applications, seismic upgrades, new clinics and hospitals, such as the Anaheim hospital which was opened this quarter,” said Kaiser Chief Financial Officer Kathy Lancaster.

Health plan enrollees for the calendar year through September has grown by about 95,000 – about a 1 percent bump. That  bring’s Kaiser total enrollment nationwide to 9 million.