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Kaiser Foundation Health Plan and Hospitals Report Third Quarter Results
Date:11/4/2008

from $28.2 billion in the same nine-month period last year. Year-to-date operating income was nearly $1.4 billion, compared to nearly $1.8 billion in the same nine-month period last year when a reduction in reserves for professional liability and workers' compensation contributed to the difference in the year-to-date results. Financial market turbulence in the first nine months of 2008 resulted in a net non-operating loss of approximately $1.1 billion, compared to net non-operating income of $630 million in the same nine-month period last year. Net income for the first nine months of this year was $202 million, compared to net income of $2.5 billion in 2007. Year-to-date capital spending was approximately $1.8 billion, on par with the same nine-month period last year.

"Though the unprecedented events unfolding in our economy and financial markets are posing challenges to our organization, our basic business and our integrated care delivery model remain strong," said Chairman and Chief Executive Officer George Halvorson. "We continue to pursue the strategic direction that has helped us achieve a solid financial footing during the past several years. From building state-of-the-art facilities to leading the technological revolution in health care to delivering high-quality care, service and education to our members and communities at an affordable cost, our people are focused on delivering total health -- and not just health care by the piece."

As a not-for-profit organization, KFHP/H also uses its earnings to support a wide range of community benefit programs, which provide direct health care coverage for uninsured families and support community-based health partnerships, and research and collaboration with community health organizations. In the third quarter of this year, a portion of KFHP/H's community benefit activities included the approval of more than 490 community benefit grants and donations. In 2007, KFHP/H provided more than $1 billion to supp
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SOURCE Kaiser Permanente
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