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Kaiser Foundation Health Plan and Hospitals Report Fourth Quarter and Fiscal Year 2009 Financial Results
Date:2/12/2010

erformance of the past two years poses ongoing challenges, because KFHP/H uses net income to make investments in care delivery facilities and technology supporting our members, patients and the communities we serve.  

Capital spending in the fourth quarter of 2009 was approximately $900 million, compared to nearly $1.1 billion in the same quarter in 2008. Capital spending for 2009 was approximately $2.6 billion, compared to $2.9 billion in 2008. During the past year, KFHP/H opened three hospitals, including two seismic hospital replacements, one new hospital tower and 17 medical office buildings.

Total membership declined by approximately 64,000 members over the past year. As of Dec. 31, 2009, membership totaled 8.58 million members.

"We are pleased that our operating income remained stable despite the challenges of 2009. We are also pleased that our non-operating income benefited from the partial recovery of the financial markets, and returned to a level that more appropriately supports our investments in our care delivery infrastructure. Given the volatility in the financial markets and ongoing governmental actions related to Medicare Advantage payment rates, we are continuing to take prudent measures to manage our operations and investments in a responsible way," said Kathy Lancaster, executive vice president and chief financial officer.

Lancaster continued, "The increase in our net income for fiscal year 2009 is largely due to the improvement in the financial markets which enabled us to partially recoup our 2008 non-operating losses."

As not-for-profit organizations, KFHP/H devote resources to improve the health of our members and the communities we serve. Our community benefit investment supports a wide range of
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SOURCE Kaiser Permanente
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