ABSTRACT OF SUGGESTED READING:
SR2-1 Laura B. Benko, "Kaiser’s Road to Fiscal Fitness," Modern Healthcare (May 22, 2000): 28 – 29.Kaiser almost broke even last year by steep rate hikes and sale of money-losing units in the East, using a 3 year turn around plan.
In some California service areas, enrollment growth outpaced hospital capacity, often forcing Kaiser to divert patients to competitng non-Kaiser facilities which cuts into profits.
Kaiser opened two new California hospitals and is tripling size of the emergency ward of another and boosting its number of emergency beds to 23 from 11. Tried to close, but reversed decision, hospital in low-income community some say to reduce its indigent-care load but faced nurses union lawsuit.
Seismic compliance - to meet strict (costly) earthquake standards by 2008.
Mid-Atlantic division continues to lose money (D.C., Maryland, Virginia). Raises a question about whether Kaiser's group practice approach can be as successful in other regions as it ahs been in the West.
Kaisers model of exclusive providers does not seem to play out as well in other parts of the country.
"Kaiser to Challenge $1 Million Fine": California Department of Corporations has fined Kaiser Permanente $1 million for allegedly delaying urgent needed care to a 74-year old patient who later died. Kaiser denies allegations. In this case a Kaiser patient suffering back and abdominal pain pleaded throughout the day to see a clinic doctor. When finally seen, she allegedly didn't receive appropriate emergency treatment and suffered a ruptured aortic aneurysm minutes after arriving in the emergency department and died 36 hours later.
