Kaiser Foundation Health Plan Inc., the state's second-largest health care insurer, saw a wider loss in the first quarter compared with last year even though its membership continues to grow.

The health maintenance organization reported a loss of $700,000 in the first quarter, which represents a negative 0.3 percent return on revenue. Kaiser saw a net loss of $300,000 in the first quarter of 2009, which was a negative 0.1 percent return on revenue.

“;We are satisfied with these results given the continuing tough economic situation all businesses are experiencing,”; said Thomas Risse, Kaiser's chief financial officer. Kaiser struggled last year and ended 2009 with an $8.7 million loss.

“;We are committed to providing the highest-quality health care in Hawaii at a competitive price,”; he said.

Kaiser is boasting a growing membership. In the first quarter alone, the company's membership increased by more than twice its growth in all of 2009.

During 2009 the company's membership grew by 1,400 to 224,000 by December. Since then the company signed on more than 3,000 to raise its membership to 227,258 customers.

“;The customers see the value that Kaiser Permanente brings — not only the cost, but in terms of what you get,”; said Kaiser spokeswoman Jan Kagehiro. “;We provide the medical care as well, which we think is the most valuable part of the membership.”;

Kaiser's operating revenue increased by 2 percent to $238.4 million compared with $233.6 million in the year-ago period. The company's operating expenses also increased to $240.7 million, up from $235.2 million during last year's first quarter.

The company's operating loss widened to $2.3 million from an operating loss of $1.6 million in the year-earlier period.

Kaiser Permanente has invested millions into its electronic data program, HealthConnect. In March, Fast Company magazine named Kaiser in its “;World's Most Innovative Companies”; feature.

“;Our market-leading electronic health record ... gives our physicians in the hospital and in the outpatient setting immediate access to a patient's status and medical history,”; said Susan Murray, vice president of quality, service and hospital administration. “;And all of our members can access their personal health records, 24/7.”;