News release: Colorado - Denver/Boulder

February 28, 2002

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

Kaiser Permanente shows growth, financial stability in 2001

Denver, CO – Kaiser Permanente's income exceeded expenses by $39 million in 2001, a year in which the health care organization surpassed $1 billion in revenue for the first time.

Because Kaiser Permanente is a nonprofit, the $39 million is plowed back into the organization to pay for renovation and expansion of facilities, purchase of medical equipment, information technology, and bond repayment. In 2002, for example, $7 million will be spent to install new MRI and CT scanners to replace outdated equipment and reduce waiting times for these radiology services.

"It was a challenge to keep our head above water this year, with significant increases in our hospitalization expenses, a nursing shortage, continued increases in drug costs, and phenomenal growth in membership," said Chris Binkley, president of the Kaiser Permanente Colorado Region.

Kaiser Permanente membership grew by nearly 9 percent in 2001. "We certainly welcome that growth and the message it delivers about the value of the care we provide," Binkley said. "But on the flip side, growth presents a particular challenge for us because our Denver/Boulder patients are cared for by in-house staff. That means we have to quickly hire doctors, nurses, and other professionals to accommodate the growth. Our goal is not to become the biggest, but to become the best choice for health care in Colorado."

While managing growth and keeping a stable financial picture, the organization also continued to score toward the top of national quality measures. The Colorado Region became the first in the state to earn the top "Excellent" accreditation of the National Committee for Quality Assurance, a national watchdog of HMO quality. Currently, only two HMOs in Colorado have that rating.

"I think we have the right style of health care to ride out the tumult in the marketplace," Binkley said. "The physicians and health care providers are all on one team, with the patient as the focus. They've developed successful programs that manage the care of people with long-term illnesses such as asthma, heart disease, and diabetes. Care is provided at the right time, in the right place, so we have the best of both worlds: efficiency and great results."

Nationally, Kaiser Permanente on Thursday reported net income of $681 million and operating income of $714 million on revenues of $19.7 billion for the year ended December 31, 2001.

Kaiser Permanente is a nonprofit health care organization that cares for 415,000 members in the six-county Denver metro area and in the Colorado Springs area. In the Denver metro area, care is provided by an integrated team of physicians, nurses, pharmacists, dietitians, mental health counselors, and physical therapists. In Colorado Springs, Kaiser Permanente cares for its members through an affiliated network of community-based physicians and other health care providers.