OAKLAND, Calif., May 5 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) today reported total operating revenue of $10.1 billion for the quarter ended March 31, 2008, compared to $9.4 billion in the same period last year. Net income in the first quarter of this year was $250 million versus $698 million in the first quarter of 2007. Operating income in the first quarter increased slightly to $545 million from $521 million in the same period last year. In addition, more than 25,000 new members joined Kaiser Permanente in the first three months of the year. Total membership is nearly 8.7 million members.
The decline in net income in the first quarter of 2008 was due to the recent turbulence in the financial markets impacting KFHP/H's investment portfolio. This resulted in a loss of $295 million in non-operating income versus a gain of $177 million in the first quarter of 2007.
On a similar pace with the first quarter of last year, capital spending was $508 million as KFHP/H continued to enhance its health care systems, technology, facilities, and health programs and services. To serve the needs of its communities, KFHP/H also continued to invest in a broad and growing range of community benefit programs in the first quarter of this year. In 2007, KFHP/H provided more than $1 billion in community benefit. In 2006, community benefit was approximately $800 million.
KFHP/H uses its earnings to invest in facilities, systems and processes
to better serve the needs of its patients, members and communities. The
organization opened a new hospital in Panorama City, California, in March
and is planning to open additional hospitals, tower expansions and medical
office buildings later this year. A new hospital in Irvine, California, is
scheduled to open shortly, as is a hospital tower expansion in Moanalua,
Hawaii. KFHP/H's strategic facility program supports innovations in
|SOURCE Kaiser Permanente|
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