Kaiser Hawaii is technically part of Kaiser California, so the statement that “Kaiser does not report numbers for California alone” is very telling. Since the Hawaii region had a net loss of $3.2 million so far this year, this means the California region made up for that deficit and still raked in more than double the combined total of Blue Cross, Health Net and PacifiCare in the first half of the year. Anyone still believe Kaiser Permanente is not for profit? If you answered yes, you might be interested in this really cool bridge we have for sale…
From Sacramento Business Journal:
Kaiser reaps big profits for first half of year
Health giant out-earns for-profit HMOs
by Kathy Robertson
Staff writer
Kaiser Permanente earned more cash and had a higher profit margin in California than Blue Cross, Health Net and PacifiCare for the first half of the year, even though Kaiser is a nonprofit and the others are expected to earn money for their shareholders.
The Oakland-based HMO and healthcare system reported net income of $1.8 billion from operations in California and Hawaii, more than double the combined California proceeds at the three for-profit health plans, according to financial statements the companies filed with the state. Kaiser does not report numbers for California alone.
Image from connecting*the*dots
Update 9/9/07: A link to the full article has been posted in the comments.
Well, if we took our members money, provided a disservice
by WITHOLDING CARE, we all would make quite a profit too.
Wait a minute… I thought healthcare providers were in business
to provide care, not reap a profit.
Isn’t the government or anyone curious why this “non-profit” is
reaping such a profit?
Gee, how do they do that? How do they afford all of that
expensive advertising? Where does all of this money come from?
Why do we hear of so many horribly, bad things happening at kaiser
to their paying members? Why is this continuing to be overlooked?
So many questions, not enough answers.
By the way, nice bridge! Has Kaiser put in an offer on that yet?
Entire article.
Notice the quote saying Kaiser has to make all that profit so it can build new buildings for its rapidly growing member base. Which would make sense, except Kaiser membership has been fairly stagnant for a while now……
Thanks for the link to the full story. I tried, but couldn’t find it anywhere over the weekend.
I am pleased with the services provided by Kaiser Permanente doctors. They’re the best and the premium is still inexpensive. I would recommend this healthcare to anyone. Thanks Kaiser.
Sure, ‘Josh’, whatever you say. Even folks who like Kaiser rarely refer to the Kaiser experience as “the best.” A more typical sentiment starts out something like this: “I know Kaiser has its problems, but…”
You gave away your financial interest in Kaiser when you accessed via a Yahoo search for kaiser permanente 2nd quarter 2007 financial report. Since you also didn’t spend more than a few seconds looking around at all the death and destruction Kaiser has caused, at best your comment comes across as selfish and uninformed, and at worst as someone (Kaiser employee?) with an ulterior motive.
Spend an hour reading through all the horror stories, then come back and tell us how great Kaiser is.
I was just about to say “well Josh, it looks like you don’t have very high standards in life if you think Kaiser is the best.” No reasonable expectations of any kind from anyone.
Thanks Admin for clarifying because I could not imagine where this guy was coming from.
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Kaiser increses the premium every year, justifying by high costs: but looks like they make a huge profit! Their incompetent doctors almost killed me! And their inconpetent doctors can not find an exlanation, a correct diagnosis they come with terms like : somatization, hypochondriac, patient needs mental drugs etc: terrible care…
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Your email to the Attorney General states:
This is a Consumer complaint against the business/company named below
Company Name: Kaiser Permanante
Comment Or Question Message: Office of the California Attorney General
Public Inquiry Unit – Via online complaint center
Recently I visited the Kaiser Permanente Website for Southern California.
Since my individual Health Insurance premium with Kaiser has ballooned to $800.00 per month – up from $350.00 per month in just a short period of time – I was seeking alternative and lower priced plans from Kaiser.
I found a program offered by Kaiser the “Steps Plan” advertised on the website – advertised – as being for folks just like me who can no longer afford their health insurance premiums.
This “Steps Plan” offered a greatly reduced premium – for period of 4 years – after which the premium would reset to the current regular rate for that particular individual plan.
Upon contacting Kaiser – and asking to be enrolled in the “Steps Plan” – I was informed that – all of the sudden the Steps Plan program was no longer available.
I filed a grievance with Kaiser asserting that because the Steps Plan was offered on the website at the time of my visit – it should be made available to me.
Kaiser responded with an apology over the fact that the plan had not been removed from their website and denied in writing my plea to rightfully receive what was advertised to me.
Aside from the Medical Insurance regulators for the State of California to whom I am also corresponding – I am asking that the Attorney General’s Office pursue my complaint – because amongst other violations – Kaiser’s behavior amounted to False and Misleading Advertising.
I have all of the saved advertisements from their website and all of the written correspondence relating to the denial of Products and Services as Advertised.
Please contact me at any future time – for additional information and copies of documents relating to this complaint.
Your files might also indicate that this is not the first time that I have sought assistance from your Agency regarding Kaiser Permanente of Southern California.
David S. Harvey
The use of the word “profit” is misleading here. Kaiser does not make profits. If it did, it wouldn’t be cutting back on services and tests because providing services and running tests would make them money. The profit motive produces quality and drives competition. The best care I’ve ever was at private hospitals under my insurance with Blue Cross, a company that lets patients choose where they get their care. In other words, competition is good. Hospitals that have to compete for your business have to strive to excellence.
Kaiser, by contrast, is a non-profit that limits patient choice to their own care facilities. It uses its excess funds to pay for expanding its bureaucracy. If it were responsive to shareholders instead of bureaucrats, it would be forced to provide a better product.
Kaiser, which doesn’t operate for shareholder profit but for reward to its bureaucrats, which limits its patient choices to its own facilities, which has an ever-expanding overhead that its members pay for, and which collectivizes its members fees is exactly what socialized medicine looks like.
I don’t disagree with everything you’ve written. For instance, I’ve been saying for a long time that the anti-socialized medicine crowd, if they only knew what the hell they are squawking about, should realize that socialized medicine in its worst form already exists at Kaiser Permanente. Ditto Sarah Palin’s “death panels”. But they’re all for it when the rationing and killing comes from a corporation as opposed to the government.
You are mistaken about who is profiting at Kaiser, however. There are three parts to Kaiser Permanente, but only the health plan and hospitals are not for profit. The Permanente Medical Groups, which employ the doctors, are for profit entities. They receive a certain percentage of the health plan’s profits, and therefore the fewer procedures and tests they order the more money they make. It’s an organizational structure deliberately designed to confuse the public and obscure the money trail.
I have posted about the hidden financial incentives elsewhere.