Kaiser is also feeling the tough times of the economy, as the article states, investments appear to be the root of the losses and not the operating portions of the foundation. BD
Kaiser Foundation's health plan and hospitals lost $794 million last year, compared with income of $2.2 billion in 2007, a drop the giant Oakland health maintenance organization blamed on a decline in the financial markets that hurt its investments.
The HMO reported a non-operating income loss for 2008 of $2.3 billion on Friday, compared with a net non-operating income of $498 million in 2007.
Kaiser lost $996 million in the fourth quarter alone. The HMO lost $233 million in the fourth quarter of 2007.
"Overall, our core operating business performed positively, as we had expected. But as the total economic environment got tougher, we saw losses in our investment portfolio," George Halvorson, Kaiser's chairman and chief executive officer, said in a statement. "The fallout from the financial markets weighed down our overall results, especially in the latter half of the year."