Kaiser Permanente reported a 64% reduction in net income in the first quarter of 2008 over the same quarter last year, citing turbulence in the financial markets.
Net income was $250 million, compared with $698 million in the first quarter of 2007, reported the Oakland, Calif.-based not-for-profit integrated health system. Kaiser cited the troubled economy as the reason for the slide, as it negatively affected its investment portfolio. This resulted in a loss of $295 million in nonoperating income in the first quarter, compared with a $177 million gain in the year-ago period.
Total operating revenue was $10.1 billion for the quarter ended March 31, up 7.4% compared with $9.4 billion a year ago. Capital spending in the quarter was $508 million, about on par with the same time period last year. The managed-care giant added 25,000 new members in the first quarter of 2008, with a total membership of nearly 8.7 million.
We are pleased that our financial performance, despite a challenging economic environment, allows us to continue investing in our technology and facilities, Kathy Lancaster, executive vice president and chief financial officer of Kaiser Permanente, said in a written statement. -- by Rebecca Vesely