Results support investments in Kaiser Permanente care delivery system and
ongoing community benefit programs
OAKLAND, Calif., Feb. 14 /PRNewswire/ -- Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries (KFHP/H) today reported total operating revenue for the fourth quarter ended December 31, 2007 of $9.6 billion which compares to $8.7 billion for the fourth quarter of 2006, and a net loss of $233 million for the quarter versus net income of $215 million in the fourth quarter of 2006. The company realized an operating loss of $101 million for the fourth quarter versus operating profit of $97 million in 2006, and a non-operating loss of $132 million versus non-operating income in fourth quarter 2006 of $118 million.
Items impacting fourth quarter net loss include additional expenses associated with the opening of new facilities, higher retirement costs, other increases in hospital and medical costs, and increased spending for community benefit programs. Approximately $350 million of the reduction in net income for the fourth quarter was due to a tightening of the organization's criteria for recognizing impairment losses on its investment portfolio.
Total revenue for the year, ended December 31, 2007, was $37.8 billion, which compares to $34.4 billion in 2006. Operating income was $1.7 billion in 2007, or 4.6 percent of operating revenue, compared to $965 million in 2006, or 2.8 percent of operating revenue. Net income for 2007 was $2.2 billion compared to $1.4 billion in 2006. Non-operating income was $498 million compared to $387 million in the prior year. As reflected in the organization's second quarter 2007 earnings release, net income was favorably impacted by a $356 million reduction in reserves for professional liability and worker's compensation.
Capital spending in 2007, designed to enhance KFHP/H's health care
systems, technology, facilities, and health programs and ser
|SOURCE Kaiser Foundation Health Plan, Inc.|
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