Healthcare Business News

Kaiser sees small income growth as it trims operations

By Beth Kutscher
Posted: February 18, 2014 - 3:30 pm ET

Kaiser Permanente, the Oakland, Calif.-based integrated delivery system, reported modest growth (PDF) in income as the group pares down its operations.

The system, which is both a payer and provider of healthcare, added 30,000 new members in 2013, bringing its membership to 9.1 million.

Its operating margin remained flat at 3.4%, as it earned $1.8 billion in operating income on revenue of $53.1 billion in 2013.

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Kaiser sold its Ohio health plan operations, the smallest in the enterprise, to HealthSpan, subsidiary of Cincinnati-based Catholic Health Partners, in a deal that closed in October. As a result, it booked a net loss from discontinued operations of $119 million compared with $31 million in 2012.

In January, the system also said it would sell its healthcare modeling company Archimedes to private-equity-backed Evidera for an undisclosed amount.

Kaiser added two new hospitals and 14 new medical offices in 2013, but its capital expenditures dipped slightly to $3.3 billion in 2013 compared with $3.5 billion the previous year.

The system has 32 hospitals on the West Coast and operations in eight states and the District of Columbia.

Follow Beth Kutscher on Twitter: @MHbkutscher

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