OAKLAND, Calif., Feb. 13 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) reported total operating revenue of $10.0 billion for the quarter ended December 31, 2008, compared to $9.6 billion in the same period last year. Operating income was $108 million in the fourth quarter of 2008, compared to a loss of $101 million in the same quarter last year. The difference between the two quarters was primarily due to an adjustment of certain self-insured liabilities in the fourth quarter of 2008. Financial market declines impacted KFHP/H's investment portfolio in the fourth quarter, resulting in a net non- operating loss of $1.1 billion versus net non-operating loss of $132 million in the same quarter last year. As a result, there was a net loss of $996 million in the fourth quarter of 2008 versus a net loss of $233 million in the same period last year.
"Overall, our core operating business performed positively, as we had expected. But as the total economic environment got tougher, we saw losses in our investment portfolio," said Chairman and Chief Executive Officer George Halvorson. "The fallout from the financial markets weighed down our overall results, especially in the latter half of the year."
Total operating revenue for fiscal-year 2008 was $40.3 billion, increasing from $37.8 billion in 2007. Operating income in 2008 was $1.5 billion, compared to $1.7 billion in 2007. The decline of the financial markets resulted in a net non-operating loss of $2.3 billion in 2008, compared to net non-operating income of $498 million in 2007. The non-operating loss in 2008 contributed to a net loss of $794 million for the year, compared to net income of $2.2 billion in 2007.
"In the midst of this continuing recession, we believe that our ability to
deliver better care more efficiently will give us a competitive advantage.
The new inform
|SOURCE Kaiser Permanente|
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