Healthcare giant Kaiser Permanente has announced that its combined total operating revenue for 2010 was $44.2 billion, up from $42.1 billion last year. Operating income was $1.2 billion, down from $1.6 billion in 2009 and net non-operating income was $789 million, compared to $524 million last year.
Kaiser's surge in non-operating income was attributable to the organization's financial strategies and the strengthening of financial markets, said Thomas Meier, the company's senior vice president and treasurer.
The company's drop in operating income was a result of moderating expenses, Meier said. He said Kaiser kept expenses in check by managing its care delivery systems, implementing new technology and monitoring how and when it builds new facilities.
"On the IT side (of moderating expenses), one of the projects we're most proud of is our electronic records (system) and our ability to have e-visits – if you will, e-mail exchanges with physicians (where) both parties have access to medical records," he said. By using e-visits, he said, patients to reduce travel costs.
"On the construction side, we're strong supporters of green technology," Meier added. Last year, he said, Kaiser committed to installing solar power systems at 15 of its California facilities by the end of 2011. The first installation went live earlier this year at Santa Clara Medical Center, and officials say the system is expected to produce 8.5 percent of the medical center's energy.
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Kaiser's 2010 fiscal year report also cited an increase of about 99,000 members over last year to a total of 8.7 million members at the end of December. Meier said Kaiser plans on continuing to grow its membership by focusing on its existing market regions.
While Meier wouldn't make any predictions for Kaiser's 2011 financial outlook, he said the company is optimistic. It will continue to watch its cost structure and monitor the slow recovery of jobs.