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24 Financial Management Kaiser Permanente Net Income Soars to $3.1B By Ayla Ellison O akland, Calif.-based Kaiser Permanente reported strong finan- cials for fiscal year 2014, with its net income increasing to $3.1 billion, up from $2.7 billion the preceding year. Including Kaiser Foundation Hospitals, Kaiser Foundation Health Plan and their subsidiaries, Kaiser Permanente's operating revenue grew to $56.4 billion in FY 2014, up from $53.1 in fiscal 2013. A large contributor to Kaiser's revenue growth was an increase in its health plan membership. Total membership increased by more than 510,000 members over the past year, and as of Dec. 31, 2014, the plan had approxi- mately 9.6 million members. Kathy Lancaster, executive vice president and CFO of Kaiser Foundation Hospitals and Health Plan, was pleased with the FY 2014 financials. "Our financial performance has positioned us to offer lower premium in- creases for 2015 while also ensuring that we can make the necessary on- going investments in our care delivery system to continue providing our members, patients, customers and communities with high-quality and af- fordable 21st century healthcare," she said. n Mayo Clinic Posts Highest Operating Margin in More Than 25 Years By Ayla Ellison R ochester, Minn.-based Mayo Clinic reported operating income of $834.3 million in fiscal year 2014, a 36.3 percent increase over its operating income of $612.1 million the previous year. Mayo's revenue also increased in fiscal 2014, growing to nearly $9.8 bil- lion compared to $9.4 billion in FY 2013. The system's 8.5 percent operating margin for fiscal 2014 was the highest it has been since 1986, according to a Minneapolis Star Tribune report. Kedrick Adkins Jr., CFO of Mayo, said one of the contributors to Mayo's success last year was strong patient volume, according to the Star Tribune. The system's expenses remained almost flat in fiscal 2014, only increasing 1.3 percent. However, Mayo did suffer a hit on its unallocated investment returns, which fell from $433.1 million in fiscal 2013 to $229.7 million in fiscal 2014. n Join what is sure to be a compelling focus group session about pharmacy's powerful impact on the patient experience. Call CompleteRx today to see how we can positively affect your bottom line. PATIENT CARE TECHNOLOGY FINANCIAL RISK MANAGEMENT OPERATIONAL EFFICIENCY CULTURAL ALIGNMENT Learn How To Help Your Hospital Thrive CompleteRx.com 1 - 888 - 388 - 1196 Thursday, May 4 Lakeshore Room The Palm, Swissôtel 12:30pm - 1:30pm