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Kaiser Foundation Health Plan and Hospitals Report Second Quarter 2009 Financial Results
Date:8/7/2009

t due to new premium rates taking effect in the early part of the year, while costs rise throughout the year. Amid mixed signals of economic recovery, we are working to address the significant changes taking place in the health care environment by operating even more efficiently," said Executive Vice President and Chief Financial Officer Kathy Lancaster. "In addition, we are preparing for the reduction in Medicare Advantage reimbursement rates that will occur in 2010, as well as for the changes that health care reform will bring. With high unemployment levels throughout the nation, we are also strengthening our efforts to retain and grow our membership."

"As we face these challenges, we remain committed to providing high-quality, affordable care to our members," added Chairman and Chief Executive Officer George Halvorson. "Leveraging our integrated care delivery system and our health information technology platform and tools has helped us achieve big gains in areas such as heart attack survival and breast cancer screening, as well as lower rates of hip fractures. We are continuing to enhance our care quality and service while making progress in managing our cost trends and premiums more effectively. We expect to make even greater progress in the future."

KFHP/H continued to broaden Kaiser Permanente HealthConnect(R), the world's largest civilian electronic health record, during the second quarter of 2009. A key part of KFHP/H's information technology platform and tools, KP HealthConnect provides clinical information, coordination, and support for all members, physicians, and other care providers in all care settings. Implementation of KP HealthConnect for all outpatient care was completed last year, and as of the end of the second quarter of this year had been implemented in 28 of 35 hospitals. All Kaiser Permanente members can access their personal health information online securely through My Health Manager on kp.org, a
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