The Hawai'i unit of the Kaiser Foundation Health Plan reported a net loss during the second quarter, reversing a gain of a year earlier. Revenue and investment income for the nonprofit health maintenance organization were higher, but increasing operating expenses put Kaiser Hawaii in the red.
SECOND QUARTER RESULTS
Operating revenue: $207.7 million, up 6% from a year ago
Operating expenses: $209.3 million, up 8 percent from a year ago
Operating loss: $1.6 million vs. a $1.3 million gain a year ago
Net investment income: $1 million vs. $900,000 a year ago
Net loss: $600,000 vs. a $2.2 million net profit a year ago
First half 2005 net income: $3.3 million vs. $4.8 million a year ago
WHAT THEY ARE SAYING
"Our operating expenses have exceeded revenues in the second quarter and we are very concerned. We are looking for opportunities where additional efficiencies are possible and make sense."Arnold Matsunobu
Kaiser Hawaii vice president of finance
The Moanalua Medical Center expansion, which is planned to include a five-story tower adding 106 private hospital rooms and tripling the size of the emergency department, should significantly reduce outside hospital expenses.
The HMO plans to review vacant positions to see which can be kept vacant without affecting patient care.
Kaiser Hawaii's new electronic medical record system, KP HealthConnect, should enhance productivity.