Kaiser Health Plan and Hospitals Report Increase in Net Income

Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and subsidiaries reported a net income of $1.611 billion and an operating margin of 5.3 percent for 2004 on revenues of $28 billion. “Our improved operating margin made possible increased internal investments in health care facilities, care systems, technology, and programs and services to better the health of Kaiser Permanente members and the communities in which they live,” said George Halvorson, KFHP/H Chairman and Chief Executive Officer. “We spent slightly more than 7.7 percent of our revenue, or almost $2.2 billion, in capital investments to improve capacity and care. In addition, we have invested $825 million in community benefit programs to meet community health needs.” For 2004, net income was $1.611 billion and operating income was $1.474 billion on operating revenues of $28 billion. In 2003, net income was 1.01 billion and operating income was 1.018 billion on revenues of $25.3 billion.