Kaiser Permanente experienced large losses in its investment portfolio in the third quarter, contributing to a total loss of $399 million in the third quarter compared with net income of $654 million in the same period last year.
Kaiser Foundation Health Plan and Kaiser Foundation Hospitals and subsidiaries lost $706 million on investments in the third quarter compared with a gain of $205 million in the same quarter a year ago.
Net income was $202 million for the first nine months of this yearan astounding drop compared with $2.5 billion in net income for the first nine months of 2007.
The Oakland, Calif.-based, not-for-profit integrated system also saw a dip in membership, with total enrollment now at 8.6 million members, down about 1% from about 8.7 million in the prior quarter. Kaiser, which released its earnings on Tuesday night, attributed enrollment losses to declining employment.
Kaiser reported total operating revenue of $10.2 billion for the quarter, compared to $9.4 billion in the same period last year. Capital spending was $682 million in the third quarter, up 6.4% from $641 million a year ago. Kaiser opened or expanded four new buildings in Southern California in the quarter.
Though the unprecedented events unfolding in our economy and financial markets are posing challenges to our organization, our basic business and our integrated-care delivery model remain strong, George Halverson, chairman and chief executive officer of Kaiser Permanente, said in a written statement. -- by Rebecca Vesely
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