Kaiser Reports Quarterly Earnings

Kaiser Permanente posted strong revenue growth for the first quarter of 2013, although earnings were flat.

The Oakland-based Kaiser reported revenue of $13.3 billion for the quarter ending March 31, compared to $12.7 billion for the first quarter of 2012, up 5%.

Operating net income was $545 million, up from $507 million in the first quarter of 2012, an increase of 7.5%. However, net income was down slightly, to $765 million compared to $770 million in the year-ago quarter, primarily due to a drop in investment income.

Capital spending was also down, totaling $779 million for the quarter, compared to $861 million during the first quarter of 2012. Most of the spending was on seismic upgrades to hospitals in California and on healthcare information technology.

“We are pleased that our financial performance allows us to continue to invest in facilities and technology that enhance the care and service we provide to our members, patients and the communities we serve,” said Kathy Lancaster, Kaiser’s chief financial officer. “We continue seismic rebuilding projects at four hospitals, underscoring our commitment to providing a safe and sustainable environment for healthcare delivery.”

Membership was up by 56,000 members from the start of 2013, and stood at 9.1 million systemwide at the end of the first quarter.

Kaiser also reported that through its My Health Manager electronic medical record system, its health plan enrollees exchanged 3.7 million emails with their providers and refilled 3.4 million prescriptions online during the quarter, increases of 10% and 26%, respectively, from the year-ago quarter.