HONOLULU (HawaiiNewsNow) – Hawaii's biggest HMO and its biggest health insurer both report profits from the first quarter, signs of good financial health for the two nonprofits.
Kaiser Hawaii ended the winter quarter with an operating profit of $600,000 plus investment income of $1.2 million - for net income of $1.8 million on $282.2 million revenue.
"We're able to reinvest almost every dollar back into caring for patients," Kaiser Chief Financial Officer Tom Risse said in the quarterly report issued Wednesday.
HMSA, the state's Blue Cross-Blue Shield insurer with about 700,000 members, ended the same quarter with operating profit of $7.2 million plus investment income of $5.1 million – for net income of $12.8 million on $614.5 dues revenue.
"Our operating gain is in line with projections," HMSA Chief Financial Officer Steve Van Ribbink said Wednesday. "We came within 1.2 percent of breaking even."
HMSA said it paid 90.3 percent of dues directly to doctors, hospitals, pharmacies and other health care professionals.
Kaiser said membership was stable during the quarter but health care services rose substantially following the closure of the two Hawaii Medical Center operations, the former St. Francis hospitals in Ewa and Liliha.