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Kaiser faces $7B loss

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Kaiser Permanente
emr system
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Things are looking rough for Kaiser Permanente, which could lose a staggering $7 billion over the next two years if it doesn't make some changes. Kaiser's operating costs are going up 10 percent per year, according to internal projections. If Kaiser could hold those cost increases to 5 percent per year, however, it could go from losing buckets of money to making $2 billion a year, according to CEO George Halvorson. The scary numbers weren't public, but last week a frustrated project supervisor sent the loss projections out to 180,000 other employees. The supervisor--who has been put on administrative leave--was concerned about problems with Kaiser's EMR system, but felt he had been ignored by Kaiser's board. Halvorson has since defended the $3 million Epic Systems EMR installation.

Get more background on Kaiser's troubles:
- read this article from the San Francisco Chronicle

Related Articles:
Kaiser fined $2 million for transplant problems. Article
Kaiser avoids Medicare funding loss. Article

Comments

Just a note to the editor, your synopsis says that Kaiser's Epic System costs $2 million. but the SF Chronicle article says it costs $3 billion.

"Halvorson has since defended the $3 million Epic Systems EMR installation." - wrong messurement unit. Try billion.

You mentioned 180,000 Kaiser employees in this article; one other newspaper stated 130,000 employees. Kaiser management always quote more than 100,000 employees in its public communications. I'm completely confused with all of these significant discrepancies as I don't believe there are more than 100,000 current Kaiser employees.

Kaiser has more than 100,000 employess and yes, the system did cost over 3 billion dollars. If you think about the market share of this organization that spans from Oregon, Washington State, Colorado, California, Ohio, Georgia and Washington DC the membership numbers and costs associated with implementing a universal information system to support their health records is fair. There has never been an implementation of this scale before so therefore, there will be never seen before costs and timeline. I do agree that things could be more efficient, but hell this is a not for profit organization who really cannot attract the best talent through high salaries and exorbiant bonuses...

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