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Kaiser Posts Turnaround for 1999

California

February 29, 2000|From Bloomberg News

Kaiser Permanente, the No. 1 not-for-profit health maintenance organization, on Monday reported a profit for 1999 as it sold money-losing plans, raised premiums and turned around its biggest unit in California.

Kaiser reported 1999 profit of $311 million, compared with a loss of $288 million in 1998, from its continuing health-care operations, excluding one-time gains and expenses. The company said its revenue rose to $16.8 billion for 1999 from $15.5 billion the previous year.

Oakland-based Kaiser has been trying to cut costs and jettison money-losing divisions as it boosts the rates it charges employers, following losses in 1997 and 1998. The company said its turnaround efforts are on track.

"We're in the early stages of a three-year turnaround program," said Dale Crandall, Kaiser's chief financial officer.

The yearly profit didn't include losses from unprofitable units in the Northeast and North Carolina that Kaiser has sold.

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