The health plan attributes
a 1,638 percent jump in its
net income to lower
than expected expenses
Kaiser Foundation Health Plan reported a net income of $1.79 million for the second quarter, a 1,638 percent increase over a $103,000 profit a year earlier.
Kaiser Permanente Hawaii President Jan Head attributes the jump in part to a one-time adjustment to lower expenses for outside services, which had been over budgeted.
Kaiser's second quarter revenues were $173.8 million. Its expenses were $168 million. That compares with revenues of $152 million and expenses of nearly $149 million for the second quarter of 2002.
Head said much of the profit will be put towards Kaiser's building and renovation program. "Earlier this year we completed expansion of our Kihei Clinic on Maui and will be renovating our Lahaina clinic as well. In addition, the shell for our new Maui Lani clinic in Wailuku is under construction," she said.
On Oahu, Kaiser is slated to open a new clinic in Waipio late next year.
The company anticipates spending about $200 million to upgrade and construct new facilities in the next three to five years, said Kaiser spokeswoman Jan Kagehiro.
She also said the company plans to file a rate increase request at the end of the month, but the amount has yet to be determined.
Another key investment for the company is a new automated medical record system planned for 2004.
Kaiser is Hawaii's second-largest insurer, with 350 physicians, 4,000 employees and 235,000 members statewide. It operates 16 outpatient clinics as well as its Moanalua Medical Center.