News release: Colorado - Denver/Boulder

March 1, 2001

For more information, call:
Steve Krizman
Kaiser Permanente
Phone: (303) 344-7932
E-mail: Steve.A.Krizman@kp.org

Kaiser Permanente Colorado in the black for 2000

Denver, CO – Kaiser Permanente's Colorado region today reported operating income of $33.9 million on revenues of $889.3 million in 2000. Net income, which includes interest income, was $38.1 million.

A nonprofit organization, Kaiser Permanente's operating income is reinvested in capital expenditures, including renovation of facilities, purchase of medical equipment, information technology, and bond repayment.

This is the second consecutive year the organization has finished in the black, following a $10.6 million loss in 1998.

Like other health care organizations, Kaiser Permanente contended with soaring pharmacy costs and growing medical technology expenses. "But our ability to maintain stability in these turbulent waters is really due to our style of health care—an integrated group of physicians and health care providers whose focus is on the patient. The people delivering the care don't have a lot of the distractions that others do in the marketplace," said Chris Binkley, president of Kaiser Permanente's Colorado region.

"How we care for the Medicare population is a perfect example of the strength of an integrated group practice," Binkley said. New Medicare members get a call from a pharmacist who coordinates their medications before their first doctor's appointment. Senior care coordinator nurses keep tabs on the frail elderly. Patients with chronic diseases are routinely monitored by specially trained nurses. "Coordinated care has enabled Kaiser Permanente to maintain a stable presence in the Medicare market," Binkley said.

Binkley points to other reasons for the continuing financial turnaround:

More small employers joined Kaiser Permanente in the second half of 2000. Changes in pricing and features have made Kaiser Permanente a more attractive value for this group.

Operations in Colorado Springs turned the corner in the fourth quarter of 2000. Start-up costs had exceeded revenues in the first two years of this territory expansion.

Kaiser Permanente's national financial turnaround also continues. The program reported operating income of $562 million on revenues of $17.7 billion in 2000. Kaiser Permanente cares for 371,000 members in Colorado. Its 535 doctors comprise the largest medical group in the state. Care is provided by an integrated team of physicians, nurses, pharmacists, dietitians, mental health counselors, and physical therapists. The organization owns and operates 16 medical offices equipped with a fully computerized patient record system.