Continuing its financial turnaround, Kaiser Permanente, Oakland, Calif., reported a 15% increase in net income to $161 million for the second quarter from $140 million in the year-ago period. Revenue climbed 12% to $5.5 billion. Second-quarter operating income for the nation's largest not-for-profit HMO jumped 49% to $168 million from $113 million in the year-ago period. Membership as of June 30 stood at 8.3 million, a 200,000-member increase from a year ago. Kaiser ended four straight years of losses with a profit in 2000. It lost control of costs in 1997 and, at its worst, posted a $288 million net loss the following year.
In other financial news, Pediatrix Medical Group, Fort Lauderdale, Fla., said its second-quarter net income more than doubled to $17 million, or 62 cents per fully diluted share, from about $6.4 million, or 30 cents per share, in the year-ago quarter. Patient-service revenue grew about 40% to $116 million. Pediatrix provides physicians to more than 190 neonatal intensive-care units at hospitals. The company raised its 2002 earnings estimate to a range of $2.46 to $2.50 from an earlier projection of $2.40 to $2.47. Officials credited the boost in earnings to same-unit growth, operating efficiencies, acquisitions of new physician groups and last year's $190 million acquisition of Magella Healthcare Corp. The company also announced the acquisition of two neonatal physician group practices -- one in Florence, S.C., and the other in Fort Worth, Texas -- bringing to six the number of groups it has acquired this year. -- by Laura B. Benko and Michael Romano