Oakland Tribune (California)
Kaiser Permanente on Friday reported sharp increases in both net income and revenue for the quarter.
The nation’s largest health maintenance organization saw its net income rise 56 percent to $698 million, from $448 million last year. Operating revenues increased 9 percent to $9.4 billion.
“Kaiser Permanente continues to show a positive trend in its financial performance over the first quarter of last year,” said Kathy Lancaster, executive vice president and chief financial officer of Oakland-based Kaiser. “The first quarter results are historically the strongest, in part because a significant number of rate increases go into effect in January, while cost increases occur throughout the year.”
Kaiser said it needs the earnings to invest in its integrated care delivery system to broaden access, meet seismic requirements and strengthen the benefits it provides to its members, purchasers and the communities it serves. In Northern California, about $10 billion is being invested in more than two dozen projects in various stages of construction.
Critics are infuriated that Kaiser continues to rake in profits and raise rates each year. Kaiser implemented rate increases in January. The hike varies from employer to employer, but on average Kaiser officials estimate it to be in the low double digits.
“Kaiser gets a tax break because they are supposed to be a not-for-profit that gives back to the company, yet here they are sitting on this money while people are being priced out of health care,” said Jamie Court, president of The Foundation for Taxpayer & Consumer Rights. “It’s incredibly frustrating to see them continue to raise rates, while at the some time their profits increase.”
About 40,000 new members joined Kaiser in the first quarter of the year, increasing total membership to 8.7 million.
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Contact David Morrill at (925) 416-4805 or [email protected]
