Kaiser profit rises to $4 million, helped by cost cutting
Kaiser Foundation Health Plan Inc. Hawaii, the state's second-largest health insurer, posted a $100,000 increase in its first-quarter profit, helped by efforts to keep costs down amid rising healthcare and other expenses. Profit was 1.8 percent of revenue.
Revenue: $220 milllion vs. $207 million a year earlier.
Investment income: $2.4 million vs. $2.5 million
Operating expenses: $218.7 million vs. $205.9 million
Operating income: $1.6 million vs. $1.4 million
Net income: $4.0 million vs. $3.9 million
Net income as percent of revenue: 1.8 percent vs. 1.9 percent
WHAT THEY ARE SAYING
"We've been focusing for months now on our cost infrastructure and the opportunties that are available. We're doing a lot of work in managing the patient beds and making sure they get the best possible service."Allison Maney
Kaiser acting chief financial officer
Kaiser's construction work on a new 106-bed tower at the Moanalua Medical Center is 5 percent complete and will continue for two more years.
The insurer is in the second year of a four-year project that will automate its medical records system. The effort is designed to improve care and increase efficiency.
Kaiser is monitoring how the new Medicare drug plan is being used and its impact on costs.