Kaiser Foundation Hospitals, Kaiser Foundation Health Plan and their respective subsidiaries saw their first quarter operating surplus nearly double as membership increases and normal seasonal revenue
patterns contributed to stronger financial performance for the first three months of 2014.
The Oakland, Calif.-based not-for-profit
healthcare system and health plans realized $822 million in operating surplus on $13.9 billion in revenue. That represents a 49% operating surplus improvement compared with $551 million in operating surplus on $13.1 billion in revenue reported in the year-ago period.
Overall surplus for the quarter was $1.1 billion, compared with $765 million in the same period of 2013.
Kaiser's operating margin for the quarter improved slightly to 5.9% from 4.2% in the first quarter of 2013, even as capital spending increased by $48 million. Membership was also up 243,000 since Dec. 31, 2013, with Kaiser now serving approximately 9.3 million members across eight states and Washington, D.C.
“Our first quarter 2014 performance demonstrates that we are making progress in our efforts to gain efficiencies and enhance our effectiveness, while maintaining our focus on high-quality are,” Kathy Lancaster, executive vice president and chief financial offier, said in a release
But management also cautioned in its announcement Friday that “first quarter results are typically higher than subsequent quarters due to timing of revenue and expense trends.”Follow Rachel Landen on Twitter: @MHrlanden