Kaiser Finishes 2012 On Strong Note

Oakland-based Kaiser Permanente continues on an earnings roll, reporting a 30% gain in net income for calendar 2012.
Kaiser's net income for last calendar year was $2.6 billion, up from $2 billion in 2011.

Much of that gain was attributed to a more than double of non-operating income, primarily from investments. That figure totaled $925 million last year, compared to $426 million in the prior year.

During the fourth quarter ending Dec. 31, net income was $509 million, up from $474 million in the fourth quarter of 2011. Revenue was $12.7 billion, up 5% from the $12.1 billion in the final quarter of 2011.

For 2012, total revenue was $50.6 billion, up 6.5% from the $47.8 billion reported in 2011.

The company spent $3.5 billion on capital projects during calendar 2012, up 9% from the $3.2 billion spent in the prior year. Much of that was earmarked toward seismic improvements at its hospitals in California.

“Our year-end operating income as a percent of revenue is consistent with the prior year's performance," said chief financial officer Kathy Lancaster. “We are pleased that our performance allows us to continue to make capital investments in our facility infrastructure.”

Kaiser spend $2 billion on community benefits in 2012, representing 3.9% of its operating revenue, officials said. During 2012, its enrollees engaged in more than 57 million electronic transactions with their providers.