Kaiser Permanente Hawaii lost $1.6 million in Q2

The nonprofit Kaiser Permanente Hawaii on Aug. 18 reported a $1.6 million loss in the second quarter of 2009, compared to a $1.5 million profit during the same period last year.

The state’s largest health maintenance organization generated $234.9 million in revenue but spent $237.8 million on operations in the second quarter. By comparison, Kaiser generated $223.7 million in revenue and spent $224.3 million on operations during the same period last year. Investment income totaled $1.3 million for the quarter, down 38 percent from $2.1 million during the same period last year.

Kaiser executives blamed the losses on the recession and declining membership. “During the first six months of the year, we have successfully maintained our costs to provide care to our members,” said Thomas Risse, Kaiser’s vice president and chief financial officer, in a prepared statement. “Our revenue shortfall is a direct result of the loss in members who had employer-provided care prior to becoming unemployed.”

Kaiser Permanente Hawaii has approximately 222,000 members statewide.

Hawaii Medical Service Association, the state’s largest health insurer, reported a ten times larger, $16.8 million loss in the second quarter, which nearly equals the $16.7 million loss it reported during the same period last year. HMSA said it fell short of its break-even point as health-care costs continue to rise.