Kaiser profits drop

Kaiser Permanente reported weaker-than-expected numbers for 2005. The giant HMO said its net income was $1 billion, a sizable drop from $1.6 billion in 2004. Management says the drop reflects capital expenses associated with Kaiser Connect, the company's billion dollar IT infrastructure project, and to making changes at facilities to meet new state retrofitting requirements in California. The company said nationwide enrollment in the Kaiser Foundation Health Plan rose 2.5 percent, bringing total membership up over the 8.4 million mark.

- see this article from the East Bay Business Times

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