Corporate Practice

Kaiser Reports $6 Million Net Loss for Year

Kaiser Foundation and Health Plan, Inc., Kaiser Foundation Hospitals, and their subsidiaries reported a net loss of $6 million for 1999, an improvement over its 1998 net loss of $288 million. Kaiser Foundation Health Plan and Hospitals contracts with regional Permanente Medical Groups to provide health care to more than 8 million Americans under the trade name Kaiser Permanente. The company reported an operating loss for 1999 of $125 million on revenues of $16.8 billion, improved from a $434 million operating loss in 1998. Included in the results are operating losses and unusual costs associated with the organization's Northeast and North Carolina regions, which are being divested; a $131 million write-off resulting from the consolidation of three clinical information systems; and a $28 million accounting charge related to facility start-up expenses. Excluding these items, Kaiser's ongoing operations realized net income of $466 million and operating income of $311 million.

Source: AHA News Now, February 28, 2000