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Kaiser Permanente lost money on operations in the Sacramento Valley in the second quarter and is not meeting financial targets for the year, company officials confirmed Wednesday.
The giant health maintenance organization did a U-turn back into profitability here and elsewhere in early 1999, but the recent numbers indicate challenges continue.
While some industry experts say they're still optimistic that Kaiser will return to profitability, that optimism cuts both ways for companies that buy health plans for their workers.
Kaiser's improved financial status early this year sterns, at least in part, from double-digit rate increases that have been slamming into commercial and individual clients. This year's hikes are already in place, and similar hikes are expected next year.
The California Public Employees' Retirement system, the biggest healthcare purchasing pool in the state, already approved an 11.7 percent increase for Kaiser next year.
Sources say rates will only get worse if the giant health...