Kaiser Reports Strong Second Quarter

Oakland-based Kaiser Permanente reported strong second quarter earnings, allowing the Oakland-based operator of hospitals, a health plan and a large medical foundation to invest heavily in infrastructure improvements and expansion.

Revenue for the second quarter ending June 30 was $13.4 billion, up 7% from the $12.6 billion reported during the second quarter of 2012. Net income was $756 million, up 47% from the $514 million reported for the year-ago quarter. Much of that was attributed to a 59% increase in net income from investments. It rose to $143 million for the quarter, compared to $90 million during the second quarter of 2012.

For the first six months of the year, Kaiser's net income was $1.5 billion, up 16% from the $1.3 billion reported during the first half of 2012. Revenue was $26.7 billion for the first half of 2013, up 5% from the first six months of last year.

Kaiser's systemwide enrollment at the end of the second quarter stood at 9.1 million, up 78,000 since the start of the year.

“Results in the first six months of the year are often stronger due in part to operating revenues being relatively steady while costs rise throughout the year,” said Kathy Lancaster, Kaiser's chief financial officer. “Our operating results, coupled with a sound investment strategy, allow us to continue to make investments in care delivery programs, facilities and technology to support our members, patients and the communities we serve.”

Kaiser expended $769 million on capital projects during the second quarter. That’s an increase of 2.2% from the year-ago quarter's $752 million.