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How Can Kaiser Permanente represent itself as non-profit?

“How can Kaiser Permanente represent itself to be non-profit when, in fact, it made $1.8 billion in profit in 2004 and will pass $2 billion in profit in 2005?  Only the PLAN is non-profit since it passes this huge profit on 50% to the physicians for golden retirements and 50% on to the hospitals.  The latter goes for bonuses moving on up to the Hospital Board (same people as the Plan Board) end up with discretionary money.  The PR concept that this money goes into IT is a big lie that the state seems to enjoy swallowing.  Meanwhile, the IT funded within the regular budget is not used to the patients’ benefit but rather to control all care from corporate headquarters in Oakland – the cheapest care possible.   And instead of state supervision, California helps Kaiser float $3 billion in ‘non-profit’ bonds.

“KP is neither non-profit or a medical care program meant to help the public.  It is a business plan for physician and manager enrichments.  Into this medical Enron the state allows Kaiser as one of about ten organizations to take care of its own employees – a formula for worker pain and more doc-manager profit.  Kaiser Permanente only thrives in California because it is a sleeping partner of the state bureaucracy.  I tip my hat, instead, to those states that have helped to kick Kaiser out – all of New England, New York, North Carolina, Texas, Kansas, Utah, and Nevada.”

                                             Charles Phillips, MD