Kaiser Quarterly Earnings Are Down

Kaiser Permanente reported a significant gain in revenue for the third quarter ending Sept. 30, but the Oakland-based integrated healthcare organization's bottom line took a hit overhaul.

Kaiser reported revenue for the quarter of $13.2 billion, up 5.6% from the $12.5 billion reported in the third quarter of 2012. But net income was down more than 20%, to $635 million, compared to $803 million in the year-ago quarter.

The company took a $124 million loss connected to its decision to shed its operations in Ohio, and its operating income was down12%, to $518 million from $587 million. Investment income was flat at $241 million.

However, for the first nine months of 

2013, Kaiser reported net income of $2.2 billion, up from $2.1 billion during the first nine months of last year. Revenue was up 5.2%, to $39.6 billion, compared to $37.6 billion a year ago.

Capital spending was down about 9%, to $2.3 billion from $2.5 billion a year ago. Health plan enrollment since the start of the year was up 95,000, to 9.1 million.

“While continuing to work on our goal of making care more affordable, we are delivering solid financial results,” said Kaiser Chief Executive Officer Bernard J. Tyson. “With the healthcare industry going through significant transformation, we continue to invest in our people, our technology and our infrastructure to ensure the highest quality care and deliver the best care experience.”