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Kaiser Foundation Health Plan, Inc. and Kaiser Foundation Hospitals Report Fourth Quarter and Fiscal-Year 2008 Results
Date:2/13/2009

ation technology systems we have been implementing during the past several years are enabling us to focus our efforts on our most expensive care delivery areas in ways that both improve care and help us achieve our goal of price trends that are below those of our competitors. We believe the market will value a lower rate of price increases," added Halvorson.

"We continue to follow the financial markets closely and are preparing for additional headwinds," said Executive Vice President and Chief Financial Officer Kathy Lancaster. "With uncertainty lingering in the markets, we are poised to take appropriate actions that limit losses and position us to participate in market recoveries. In addition, we continue to hold a highly diversified and liquid portfolio of investments, which we have marked down to current market values for financial reporting purposes. Over the long run, our portfolio has performed well, and we believe that our investment strategy will meet our long-term goals."

Capital spending in the fourth quarter was nearly $1.1 billion, on par with the fourth quarter of 2007. Similarly, capital spending in 2008 reached $2.9 billion, slightly more than the $2.8 billion reported in 2007. During the past year, KFHP/H opened three new hospitals, a hospital tower, and 10 medical office buildings to meet the needs of members. In 2009, KFHP/H will reduce or defer some capital projects and adjust project timelines where it is prudent to do so.

"During the past several years, we have significantly enhanced our care delivery infrastructure, including our information systems, facilities, and medical technology. These enhancements give our physicians, nurses, labor partners, and other employees the ability to strengthen the quality of our care and service, and manage costs. Capitalizing on our integrated system while making progress with the continuing roll-out of our systems infrastructure will h
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SOURCE Kaiser Permanente
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