Kaiser Permanente's operating income fell 23% in the quarter ended March 31 compared with the same period last year, but overall earnings were up as investments recovered.
Kaiser rides investment recovery to higher profit
The Oakland, Calif.-based not-for-profit hospitals and health plan generated $11 billion in operating revenue during the quarter, about 4% more than the first quarter of 2009. In a news release, Kathy Lancaster, executive vice president and chief financial officer, attributed the lower operating margin to a decrease in Medicare Advantage payments “combined with increases in outside medical costs.”
As a result of improving financial markets, Kaiser's nonoperating income increased to $225 million in the quarter compared with a $194 million loss in the first quarter of 2009, pushing net income up 64% to $706 million from the $430 million reported for the quarter last year.
Membership in Kaiser Foundation Health Plan increased by 44,000 members in the first three months of 2010, the organization reported.
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