Kaiser Permanente, Oakland, Calif., said its second-quarter net income fell about 25% to $272 million from $363 million in the year-ago quarter. Officials blamed operating expenses, including facility expansion and seismic retrofitting. Kaiser said its capital spending hit $630 million in the quarter, up 15% from $547 million in the year-ago quarter. Revenue rose 10% to $8.5 billion, and membership in the nation's largest not-for-profit HMO grew about 44,000 to a total of nearly 8.6 million. -- by Michael Romano
Kaiser's income drops as capital spending climbs
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