Kaiser Permanente Puts Money Back into Patient Care Despite a Down Economy

Kaiser Permanente’s efforts to expand its services and membership base not only benefit its members, they also profit various communities as jobs are created. In 2005, the leading HMO provider issued a news release that discussed their continued success, as well as plans for ongoing development at the cost of over $20 billion. How is Kaiser Permanente able to fund these endeavors? According to a statement in the same article from Chairman and CEO, George Halvorson, “Wise use of our membership dollars allows us to fund our new hospitals, seismic retrofitting, facility improvements and KP HealthConnect, our new electronic physician-support tool.” Six years later, are their plans coming to pass? Let’s allow the building projects to answer the question.

Anaheim: Kaiser Permanente is investing $500 million to transform 27 acres of land into a medical campus, which will include a 262-bed replacement hospital. The first building will open in the fall of 2011, with remaining facilities being completed by 2013.

Elk Grove: A 64,579 square-foot medical office building is underway to help serve Elk Grove’s growing population.

Fontana: With a $430 million construction budget, plans are underway to build a new seven-story, 314-bed hospital to replace the current Kaiser Permanente location. Among other things, the new building is being constructed to meet California’s new building codes for earthquake safety. The hospital is scheduled to open in December 2012.

Harbor City: The Los Angeles community will be seeing a lot of buildings going up and some going down, as Kaiser Permanente expands and renovates its medical facilities. The $294.7 million project has an anticipated completion date of May 2015.

Hayward/San Leandro: Construction is scheduled to replace the current medical center to provide family-friendly hospital rooms and an environment-friendly facility. According to the general contractors, Rudolph and Sletten, Kaiser Permanente will be the largest employer in San Leandro when the building is finished.

Moreno Valley: In the middle of the city’s budget challenges, Kaiser Permanente is helping to create jobs by beginning construction of a new medical office building.

Oakland/East Bay: An ongoing project is underway to replace and retrofit several buildings at Kaiser Permanente’s flagship hospital.

Redwood City: This facility is renowned for its specialized care of stroke and neurological patients. Kaiser Permanente is rebuilding a new hospital, which is due to be completed in 2014.

San Mateo: In the fall of 2011, construction will be finished on the new San Mateo facility that will house several medical offices.

San Diego Region: Approximately $325 million will be spent on upgrades and expansions at three Kaiser Permanente locations in the San Diego area. The end result will be more doctors, operating rooms, and an even more baby-friendly environment at the Zion Avenue hospital.

South Sacramento: This facility continues to grow, with the latest project involving the addition of a 136-bed hospital tower.

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