News Stories About Kaiser Permanente
1 – 34 THE SUNDAY
MARCH 27, 1977 - First profit
in 13 years
group .. reporting fiscal health
The first prepaid health care
plan in the Midwest earned $900,000 last year, said John R. Capener,
vice president and regional manager of Kaiser.
Most of the money will go to
payoff a $5 million deficit that accumulated over the past eight years,
He said he believes Kaiser has
turned the corner and will continue to earn enough money-to meet its
obligations without drawing on a heavy subsidy from its parent
organization in California.
The plan here, with 105,000
members, is part of the Kaiser-Permanente Medical Care
Kaiser-Permanente calls itself
the nation's largest nongovernment provider of health care, serving
more than three million members, most of. whom are in California.
Kaiser announced the improved
financial picture at the same time it opened a $10.6 million, 88-bed
addition at its Parma Medical Center, 12310 Snow Road.
Kaiser provides total health care to its subscribers for
monthly prepaid rates. Instead of being on a physician fee basis,
Kaiser contracts with physicians who provide the service.
A Kaiser subscriber
pays his monthly insurance bill, gets his health care and never sees a
The Kaiser program started here
in 1964 as the Community Health Foundation, an all-union-financed
program to deliver health care.
The unions turned its 20,000
member organization over to Kaiser in 1969 when it was faced with the
need for expansion and capital investment. It had patterned itself
after Kaiser in the first place.
Cleveland was Kaiser's first move away from the West,said Capener. "We
wanted to see if our plan would work elsewhere, and it has."
Since 1969, Kaiser has .spent
$37.5 million in building its hospitals and medical centers.
Kaiser has become a big business in Cleveland. It employs 1,000
persons, Last year, Kaiser spent $13 million on
There are 100 physicians who belong to Ohio Permanente Medical Group,
and provide services
Another $17 million was spent last year for supplies and
Ironically, the once union-dominated board of trustees is now nearly
totally controlled by eight Kaiser officials. There is not one union
official on the board. The only Cleveland community member is Lee C.
Howley, a lawyer and retired vice president and general counsel of
Cleveland Electric Iluminating Co. Howley has been on the board since
Capener said union officials
serve on an advisory board with other community representatives. He
said they last met two years ago.
Before the federal law was changed to force employers to offer employes
prepaid health insurance plans as an option to regular insurance
programs, Kaiser relied on union officials to open the doors for them.
Many Cleveland union officials negotiated Kaiser as an option for their
"Without the support of labor,
Kaiser could not have gotten off the ground here," said
Phillip Welsh, Kaiser community services director and former official
of Communication Workers of America, Welsh said half of Kaiser's
members belong to unions.
The father of Kaiser here is
Sam Pollock, retired president of Meat Cutters District Union 427.
Pollock joined with the late Cecil B. Dunlap, former
president, and David McDonald, the current president of Retail Store
Employes Local 880 to raise the capital to start the plan.
Pollock became such an expert
in health care delivery while establishing what was called the
Community Health Foundation, that when he retired four years ago he
began teaching the subject in college.
He is still teaching at California State University, Northland, Calif.
In addition to Parma, Kaiser
operates an 88 bed hospital at 11302 Fairhill Rd. SE; a 37-bed
maternity and mental health hospital, formerly St. Ann Hospital, at
2475 East Blvd. SE, and a health center in 50 Severance Circle
Building, Severance Shopping Center. The East Side units are
called the Kaiser Medical Center.
Carpener said there will be new buildings in the future.