Oakland-based Kaiser Foundation Hospitals, Kaiser Foundation Health Plan and their subsidiaries recorded net income of $770 million in the first quarter of 2012, a 16.4 percent drop compared with the $921 million in the same period of 2011.
Total operating revenue ticked upward 5.8 percent to $12.7 billion. Operating income totaled $507 million compared with $630 million in the same quarter last year.
KFH/HP boosted capital spending 38.2 percent in the first quarter of 2012, as it spent $861 million on technology investments and updating hospitals to comply with California's seismic standards.
CFO Kathy Lancaster said the health system is not worried about the lower earnings because it is making a conscious effort of investing in the future. "Although our operating income results were not as strong as the first quarter of 2011, we continue to maintain an earnings level that allows us to fulfill our commitment to our members, including making critical investments that meet seismic requirements and increasing connectivity," she said.
Total operating revenue ticked upward 5.8 percent to $12.7 billion. Operating income totaled $507 million compared with $630 million in the same quarter last year.
KFH/HP boosted capital spending 38.2 percent in the first quarter of 2012, as it spent $861 million on technology investments and updating hospitals to comply with California's seismic standards.
CFO Kathy Lancaster said the health system is not worried about the lower earnings because it is making a conscious effort of investing in the future. "Although our operating income results were not as strong as the first quarter of 2011, we continue to maintain an earnings level that allows us to fulfill our commitment to our members, including making critical investments that meet seismic requirements and increasing connectivity," she said.
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